Relay Co. makes batons. It can make 300,000 batons a year at a variable cost of 750,000

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Relay Co. makes batons. It can make 300,000 batons a year at a variable cost of £750,000 and a fixed cost of £450,000. Relay predicts that next year it will sell 240,000 batons at the normal price of £5 per baton. In addition, a special order has been placed for 60,000 batons to be sold at a 40% discount. What will be Relay Co.’s total operating profit if the special order were accepted in addition to the planned sales at full price?

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