Woodson Corporation Provided the Following Information Regarding Its Only Product

Woodson Corporation provided the following information regarding its only product: $\begin{array}{|l|r|}\hline \text { Sale price per unit } & \$ 65.00 \\\hline \text { Direct materials used } & \$ 160,000 \\\hline \text { Direct labor incurred } & \$ 185,000 \\\hline \text { Variable manufacturing overhead } & \$ 120,000 \\\hline \begin{array}{l}\text { Variable selling and administrative } \\\text { expenses }\end{array} & \$ 70,000 \\\hline \text { Fixed manufacturing overhead } & \$ 65,000 \\\hline \text { Fixed selling and administrative expenses } & \$ 12,000 \\\hline \text { Units produced and sold } & 10,000 \\\hline\\\hline\text { Assume no beginning inventory }\\\hline\end{array}$
-Assuming there is excess capacity,what would be the effect on operating income of accepting a special order for 800 units at a sale price of $52 per product? The 800 units would not require any variable selling and administrative expenses.(NOTE: Assume regular sales are not affected by the special order.)

A) Decrease by $4,400
B) Decrease by $1,200
C) Increase by $4,400
D) Increase by $78,800