ABC Company produces a single unit that it sells for $$31$

per unit. ABC has the capacity to produce $46,000$ units of

this product each month. ABC is currently selling $41,000$

units each month. The costs associated with each unit are

given below:

direct materials $ $6\mathrm{.}75$

direct labor $ $5\mathrm{.}30$

variable overhead $ $2\mathrm{.}10$

sales commissions $ $1\mathrm{.}30$

packaging $ $2\mathrm{.}25$

distribution $ $1\mathrm{.}90$

total variable cost $$19\mathrm{.}60$

allocated fixed overhead $ $0\mathrm{.}80$

allocated fixed selling costs $ $0\mathrm{.}75$

total cost $$21\mathrm{.}15$

ABC Company has received a special order from a customer

who wants to purchase $12,000$ units at a reduced price of

$$26$ per unit. The special order customer will be providing

their own label as well as pay the shipping costs. Thus,

there would be no sales commissions or distribution costs

associated with the special order. However, the special

order units will require an additional direct material

cost of $$1\mathrm{.}80$ per unit.

Calculate the increase in company profits if ABC Company

accepts the special order.