Given the following data:
Total
Per Unit
Sales
$30,000
$10
Less variable expenses
18,000
6
Contribution margin
12,000
$ 4
Less fixed expenses
9,000
Net operating income
$ 3,000
The company has an opportunity to secure a special order of 800 units if it is willing to drop the selling price on these units to $9. In addition to the usual variable expenses, the costs of securing the special order would be $1,000. The company”s regular sales would not be affected by the special order. If the special order is accepted, the company”s overall net operating income will:
A) increase $2,400
B) increase $1,400
C) increase $2,200
D) decrease $2,200