Delilah Incorporated provided the following information regarding its only product: Sale price per unit $50.00 Direct materials used $160,000 Direct labor incurred $185,000 Variable manufacturing overhead $120,000 Variable selling and

Delilah Incorporated provided the following information regarding its only product: Sale price per unit                                                 $50.00 Direct materials used                                           $160,000 Direct labor incurred                                            $185,000 Variable manufacturing overhead                     $120,000 Variable selling and administrative expenses  $70,000 Fixed manufacturing overhead                          $65,000 Fixed selling and administrative expenses       $12,000 Units produced and sold                                      20,000 units Assume no beginning inventory Assuming there is excess capacity, what would be the effect on operating income of accepting a special order for 5,000 units at a sale price of $40 per unit? (NOTE: Assume regular sales are not affected by the special order and all orders incur variable selling and administrative expenses) Select one: a. Increase by $123,250 b. Increase by $78,750 c. Decrease by $78,750 d. Decrease by $66,250 e. Increase by $66,250