The Melrose Corporation produces a single product, Product C. Melrose has the capacity to produce 76,000 units of Product C each year. If Melrose produces at capacity, the per unit costs to produce and sell one unit of Product C are as follows:

Direct materials	$	22.10
Direct labor	$	18.20
Variable manufacturing overhead	$	13.90
Fixed manufacturing overhead	$	15.50
Variable selling expense	$	12.60
Fixed selling expense	$	8.30

The regular selling price of one unit of Product C is $97.60. A special order has been received by Melrose from Moore Corporation to purchase 3,000 units of Product C during the upcoming year. If this special order is accepted, the variable selling expense will be reduced by 75%. Total fixed manufacturing overhead and fixed selling expenses would be unaffected except that Melrose will need to purchase a specialized machine to engrave the Moore name on each unit of product C in the special order. The machine will cost $6,000 and will have no use after the special order is filled. Assume that direct labor is a variable cost. Assume Melrose expects to sell 66,000 units of Product C to regular customers next year. If Moore company offers to buy the 3,000 special units at $87.60 per unit, the effect of accepting the special order on Melrose's net operating income for next year will be:

$13,350 decrease

$84,750 increase

$19,350 increase

$15,850 increase