A).

decrease by $500,000.

B.

increase by $200,000.

C.

decrease by $260,000.

D.

increase by $136,000.

Van Horn, Inc. has been producing and selling 20,000 meters a year. The company has the capacity to produce 25,000 meters with its present facilities. The following information is also available: Selling price per unit $300 $110 Variable costs per unit:Manufacturing Selling and Administrative 50 Fixed costs in total:Manufacturing $1,280,000 560,000 Selling and Administrative If a special order is accepted for 5,000 meters at a price of $250 per unit, net income would