A company is considering a special order from an overseas customer for 10,000 units at a price of $40.00 per unit. The company's product normally sells for $52.00 per unit and has variable manufacturing costs of $21.00 per unit and variable selling costs of $4.00 per unit. Fixed manufacturing costs are $500,000 and fixed selling and administrative costs are $200,000. The company has capacity to produce 100,000 units and is currently producing 80,000. If the company accepts the order, they will incur legal and accounting fees of $7,000 in connection with the order. Variable selling costs will not be incurred on the special order.

What are the incremental revenues associated with the special order?

What are the incremental costs associated with the special order?

What amount of additional profit or loss will be incurred if the order is accepted?