Markson Company Had the Following Results of Operations for the Past

Markson Company had the following results of operations for the past year: $\begin{array} { | l | l | l | } \hline \text { Sales } ( 8,000 \text { units at } \$ 20 ) & \$ 160,000 & \\\hline \text { Variable manufacturing costs } & \$ 86,000 & \\\hline \text { Fixed manufacturing costs } & 15,000 & \\\hline \text { Variable selling and administrative expenses } & 12,000 & \\\hline \text { Fixed selling and administrative expenses } & 20,000 & ( 133,000 ) \\\hline \text { Operating income } & & \$ 27,000 \\\hline\end{array}$
A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $14 per unit. In addition to existing costs, selling these units would increase fixed overhead by $1,600 for the purchase of special tools. Markson's annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will:

A) Decrease by $1,600.
B) Increase by $1,900.
C) Decrease by $5,100.
D) Decrease by $5,650.
E) Increase by $3,500.