Dakoka Corporation Provided the Following Information Regarding Its Only Product

Dakoka Corporation provided the following information regarding its only product:

- Assuming there is excess capacity, what would be the change in operating income as a result of accepting a special order for 1,000 units at a sales price of $55 per unit assuming additional fixed manufacturing overhead costs of $7,000 would be incurred?

A) Operating income decreases $2,000.
B) Operating income decreases $5,000.
C) Operating income decreases $87,000.
D) Operating income increases $2,000.