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Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its

Almond Treats manufactures various types of cereals that feature almonds. Acme Cereal Company has approached Almond Treats with a proposal to sell the company its top selling cereal at a price of $21,161 for 20,000 pounds. The costs shown are associated with production of 20,000 pounds of almond cereal:

Almond Treats cost data
Costs Amounts
Direct material $13,534
Direct labor 6,177
Manufacturing overhead 6,572

The manufacturing overhead consists of $2,942 of variable costs with the balance being allocated to fixed costs. If Almond Treats buys the cereal, what is the effect on profit? If the effect is negative, use a dash - not parentheses ( ).

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