Bluebird Manufacturing has received a special one-time order for 15,400 bird feeders at $3.40 per unit. Bluebird currently produces and sells 75,000 units at $7.40 each. This level represents 80% of its capacity. Production costs for these units are $3.90 per unit, which includes $2.65 of variable costs and $1.65 of fixed costs. If the special offer is accepted, there will be no incremental fixed cost. If Bluebird accepts this additional business, the effect on income will be:
Multiple choice
o $ 52.360 increase
o $ 40.810 increase
o $ 7,700 increase
o $ 11.550 increase
o $ 40.810increase