The MNK Company has gathered the following information for a unit of its most popular product: Direct materials $6 Direct labor 3 Overhead (40% variable) 5 cost to manufacture 14 Desired markup (50%) 7 Target selling price 21 The above cost information is based on 4,000 units. A foreign distributor has offered to buy 1,000 units at a price of $16 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be $1 per unit for the special order. If the special order is accepted, MNK's operating profits will increase by: a. $1,000 b. $1,600 c. $2,000 d. $4,000 e. $5,000