Tango Company manufactures staplers and currently is operating at 70% of its capacity of 100,000 units.

Tango Company manufactures staplers and currently is operating at 70% of its capacity of 100,000 units.  It has received an offer from a foreign office supply company to buy 10,000 staplers at $3 each.  Normal selling price is $5 each.  The units will be priced FOB shipping      point.  Fixed costs are $2 each and variable costs are $1.50 each.

What would be the effect on net income if the order is accepted? Label your dollar amount as      an increase or decrease and show calculations.
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