The Chou Company provided the following information regarding its one and only product, rollers:

Direct labour $45,000

Direct materials used 30,000

Fixed factory overhead 42,000

Fixed selling and administrative expenses 8,000

Variable factory overhead 28,000

Variable selling and administrative expenses 12,000

Selling price per unit 20

Units produced and sold 10,000

Assuming there is excess capacity, what would be the effect of accepting a special order for 2,000 units at a price of $16.00 per roller?

Net income would increase by $3,000.

Net income would decrease by $8,000.

Net income would increase by $9,000.

Net income would decrease by $1,000.