The following information relates to a product produced by Faulkland Company:

Direct materials	$	15
Direct labor		12
Variable overhead		11
Fixed overhead		13
Unit cost	$	51

Fixed selling costs are $1,080,000 per year. Variable selling costs of $3 per unit sold are added to cover the transportation cost. Although production capacity is 580,000 units per year, Faulkland expects to produce only 480,000 units next year. The product normally sells for $56 each. A customer has offered to buy 68,000 units for $50 each. The customer will pay the transportation charge on the units purchased. If Faulkland accepts the special order, the effect on income would be a:

$408,000 decrease.

$612,000 increase.

$68,000 increase.

$816,000 increase.