Wade Company Is Operating at 75% of Its Manufacturing Capacity

Wade Company is operating at 75% of its manufacturing capacity of 140,000 product units per year.A customer has offered to buy an additional 20,000 units at $32 each and sell them outside the country so as not to compete with Wade.The following data are available: $\begin{array}{lrr}\text { Costs at 75\% capacity: } & \text { Per Unit } & \text { Total } \\\text { Direct materials } & \$ 12.00 & \$ 1,260,000 \\\text { Direct labor } & 9.00 & 945,000 \\\text { Overhead (fixed and variable) } & 15.00 & 1,575,000 \\\text { Totals } & \$ 36.00 & \$ 3,780,000 \\\hline \hline\end{array}$ In producing 20,000 additional units,fixed overhead costs would remain at their current level but incremental variable overhead costs of $6 per unit would be incurred.What is the effect on income if Wade accepts this order?

A) Income will decrease by $4 per unit.
B) Income will increase by $4 per unit.
C) Income will increase by $5 per unit.
D) Income will decrease by $5 per unit.
E) Income will increase by $11 per unit.