The following information is taken from the accounting records of Betty's Toys and relates to a wind$-$up toy produced by Betty's Toys:

Direct Materials $q,$ $$14$

Direct Labor. $q,$ $$9$

Variable Overhead $q,$ $$7$

Fixed Overhead. $q,$ $$10$

Fixed selling costs are $$750,000$ per year. Variable selling costs of $$4$ per unit sold are added to cover the transportation cost. Although production capacity is $500,000$ units per year, Betty's Toys expects to produce only $300,000$ units next year. The product normally sells for $$55$ each. A customer has offered to buy $60,000$ units for $$35$ each. The customer will pay the shipping company for the transportation charge on the units purchased. If Betty's Toys accepts the special order, the effect on income would be a

Multiple Choice

$$ $$60,000$ increase

$$ $$300,000$ increase