Blue Technologies manufactures and sells DVD players. Great Products Company has offered Blue Technologies $22 per DVD player for 10,000 DVD players. Blue Technologies' normal selling price is $30 per DVD player. The total manufacturing cost per DVD player is $18 and consists of variable costs of $14 per DVD player and fixed overhead costs of $4 per DVD player. (Note: Assume excess capacity and no effect on regular sales.)
How much are the expected increase (decrease) in revenues and expenses from the special sales order?
A. Expected increase in revenues $220,000; expected increase in expenses $40,000
B. Expected increase in revenues $220,000; expected increase in expenses $140,000
C. Expected increase in revenues $220,000; expected increase in expenses $120,000
D. Expected increase in revenues $300,000; expected increase in expenses $140,000