A company incurs $14 of variable costs and $6 of fixed costs to produce product A, which

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Question:

A company incurs $14 of variable costs and $6 of fixed costs to produce product A, which sells for $30. A foreign buyer offers to purchase 3,000 units at $18 each. If the company accepts and produces the special order with unused capacity, its net income will

a. decrease by $6,000.

b. increase by $6,000.

c. increase by $12,000.

d. increase by $9,000.