Samson Designers producers a lady's handbag that normally sets for $120. The company produces 800 units annually but has the capacity to produce 1, 100 units. An order from a customer has been received for 200 handbags at $85 each that would not disrupt current operations. Current costs for the handbags are as follows.

Direct materials $23.00
Direct labor 45.00
Variable overhead 7.00
Fixed overhead 12.00
Total 87.00

In addition the customer would like to add a monogram to each bag which would require an additional $4 per bag in additional labor costs. Samson would also have to purchase a piece of equipment to create the monogram which would costs $800. This equipment would not have any other users. Which statement is true with regard to this situation?

A. Incremental revenues will exceed incremental costs by $400
B. Incremental revenues will exceed incremental costs by $1, 200
C. Incremental costs will exceed incremental revenues by $1, 200
D. Incremental costs will exceed incremental revenues by $2,000