Apex Company Produces Artificial Christmas Trees

Apex Company produces artificial Christmas trees.A local shopping mall recently made a special order offer;the shopping mall would like to purchase 200 extra-large white trees.Apex Company is currently producing and selling 20,000 trees;the company has the excess capacity to handle this special order.The shopping mall has offered to pay $120 for each tree.An accountant at Apex Company provides an estimate of the unit product cost as follows:

This special order would require an investment of $10,000 for the molds required for the extra-large trees.These molds would have no other purpose and would have no salvage value.The special order trees would also have an additional variable cost of $5.00 per unit associated with having a white tree.This special order would not have any effect on the company's other sales.If the special order is accepted,the company's operating income would increase (decrease) by

A) $2,300 decrease.
B) $13,100 decrease.
C) $2,100 increase.
D) $13,100 increase.