The melrose corporation produces a single product, product c. melrose has the capacity to produce 70,000 units of product c each year. if melrose produces at capacity, the per unit costs to produce and sell one unit of product c are as follows: direct materials $20 direct labor $17 variable manufacturing overhead $13 fixed manufacturing overhead $14 variable selling expense $12 fixed selling expense $ 8 the regular selling price of one unit of product c is $100. a special order has been received by melrose from moore corporation to purchase 7,000 units of product c during the upcoming year. if this special order is accepted, the variable selling expense will be reduced by 75%. total fixed manufacturing overhead and fixed selling expenses would be unaffected except that melrose will need to purchase a specialized machine to engrave the moore name on each unit of product c in the special order. the machine will cost $10,500 and will have no use after the special order is filled. assume that direct labor is a variable cost. assume melrose expects to sell 60,000 units of product c to regular customers next year. if moore company offers to buy the 7,000 special units at $90 per unit, the effect of accepting the special order on melrose's net operating income for next year will be: multiple choice $42,000 increase $54,000 decrease $105,000 increase $248,500 increase