Gatton, Inc., provided the following information regarding its one and only product - scissors: Fixed manufacturing costs $420,000 Fixed selling and administrative costs 80,000 Fixed manufacturing costs 42,000 Fixed selling and administrative costs 80,000 Variable manufacturing costs 1,030,000 Variable selling and administrative costs 120,000 Selling unit price 100 Units produced and sold 20,000 Assuming there is excess capacity, the effect of accepting a special order for 1,000 units at a price of $80.00 per scissors will be:
A.
a. net income would increase by $1,000
B.
b. net income would increase by $22,500
C.
c. net income would decrease by $80,000
D.
d. net income would decrease by $200,000