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Minnesota Company has no beginning and ending inventories, and has the following data about its...

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Accounting

Minnesota Company has no beginning and ending inventories, and has the following data about its only product:

Fixed manufacturing costs $92,000

Fixed selling and administrative costs $69,000

Variable manufacturing costs $1,030,000

Variable selling and administrative costs $120,000

Selling price(per unit) $125

Units produced and sold 23,000

Assume there is excess capacity. The company has received a special order for 1,000 units at $60.00 per unit. If the special order is accepted, what will be the effect on net income?

A) net income increases by $3,000

B) net income increases by $6,000

C) net income increases by $10,000

D) net income increases by $15,220

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