Blowing Sand Company has just received a one-time offer to purchase 11,200 units of its Gusty model for a price of $39 each. The Gusty model normally sells for $45 and costs $41 to produce ($34 in variable costs and $7 of fixed overhead). Because the offer came during a slow production month, Blowing Sand has enough excess capacity to accept the order.

1.Should Blowing Sand accept the special order?

Yes

2.Calculate the increase or decrease in short-term profit from accepting the special order.