Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 3,000 units at a sale price of $45 per product assuming additional fixed manufacturing overhead costs of $5,000 is incurred? (NOTE: Assume regular sales are not affected by the special order.)
A. Increase by $135,000
B. Decrease by $49,750
C. Increase by $49,750
D. Increase by $54,750
