Alpine Luggage has a capacity to produce 430,000 suitcases per year. The company is currently producing and selling 350,000 units per year at a selling price of $404 per case. The cost of producing and selling one case follows:

Variable manufacturing costs	$	161
Fixed manufacturing costs		40
Variable selling and administrative costs		78
Fixed selling and administrative costs		19
Total costs	$	298

The company has received a special order for 20,000 suitcases at a price of $252 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:

Selling price per case	$	252
Variable manufacturing costs		161
Fixed manufacturing costs		40
Variable selling and administrative costs		49
Fixed selling and administrative costs		19
Net profit (loss) per case	$	(17	)

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) Please fill in the blank columns.

In Blank column 1: Status Quo 350,000 units

in Blank column 2: Status Quo 370,000 units

In blank columns 3 & 4: Difference

Sales Revenue
Variable costs
manufacturing
selling and administration
contribution margin
fixed costs
operating profit