Blues Magoos Company manufactures a special pipe fitting that sells for $7.25 and has the following unit cost characteristics:

Direct Materials $2.50

Direct Labor 1.80

Variable Overhead 0.60

Fixed Overhead (150% of direct labor) = 2.70

Variable Selling Expenses 0.40

The company has received an order for 4,000 fittings at $5.50 each. This is a one-time order, and the company has capacity available to produce the extra fittings. However, there would be special setup costs of $500 for the order, and the variable selling expenses would not be incurred for the order. Determine the incremental profit (or loss) if this order is accepted (please show work)