Jaws Inc. currently sells 40,000 dental tools to its regular customers but it has a capacity to produce 50,000 tools. Its product sells for $30 per tool and the variable costs incurred are as follows on a per tool basis:               Direct materials           $7             Direct labour                $6             Sales commission        $1   A customer has proposed a special order to purchase 10,000 tools at a lower selling price. If Jaws accepts the order, the company will not have to pay its sales personnel their sales commissions. However, the company will incur a shipping cost of $3 per tool. If Jaws accepts the order at a special price of $20 per tool, how would operating income be affected?   Multiple Choice   increase by $50,000   decrease by $30,000   increase by $40,000   decrease by $120,000

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