Wade Company is operating at 75% of its manufacturing capacity of 150,000 product units per year. A customer has offered to buy an additional 14,500 units at $38 each and sell them outside the country so as not to compete with Wade. The following data are available:

Costs at 75% capacity:	Per unit	Total
Direct materials	$15.20	$1,710,000
Direct labor	11.40	1,282,500
Overhead (fixed and variable)	19.00	2,137,500
Totals	$45.60	$5,130,000

In producing 14,500 additional units, fixed overhead costs would remain at their current level but incremental variable overhead costs of $7.6 per unit would be incurred. What is the effect on income if Wade accepts this order?

Income will increase by $3.80 per unit.

Income will decrease by $7.60 per unit.

Income will decrease by $34.20 per unit.

Income will increase by $11.40 per unit.

Income will increase by $7.60 per unit.