Alpine Luggage has a capacity to produce 370,000 sultcases per year. The company is currently producing and selling 290,000 units per year at a selling price of $399 per case. The cost of producing and selling one case follows: Variable manufacturing costs Fixed manufacturing conta Variable selling and administrative conta Fixed selling and administrative coats Total costs $ 162 40 80 20 $ 302 The company has received a special order for 20,000 sultcases at a price of $251 per case. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $49 per suitcase. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations: $ 251 162 Selling price per case Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costa Net profit (loss) per case 49 20 $(20) Required: a. What is the impact on profit for the year if Alpine accepts the special order? (Enter your answers in thousands of dollars. Select option "higher" or "lower", keeping Status Quo as the base. Select "none" If there is no effect.) (All revenues and costs in $000) Status Quo Alternative 290,000 Units 310,000 Units Difference Sales revenue Variable costs: Manufacturing Selling and administrative Contribution margin Fixed costs Operating profit b. Do you agree with the decision to reject the special order? O Yes O NO