Thompson Company had the following results of operations for the past year:

Sales (26,000 units at $17.5)		$455,000
Direct materials and direct labor	$200,200
Overhead (20% variable)	48,100
Selling and administrative expenses (all fixed)	96,200	(344,500)
Operating income		$110,500

A foreign company (whose sales will not affect Thompson's market) offers to buy 5,700 units at $15.0 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $1,450 and selling and administrative costs by $1,150. If Thompson accepts the offer, its profits will:

Increase by $40,470.

Increase by $36,901.

Increase by $85,500.

Decrease by $41,610.

Increase by $41,610.