Chernin Enterprises can make 1,000 shirts per month. Chernin sells 850 shirts per month to

department stores at $8 per shirt. The company's cost per shirt based on making 1,000 shirts is:

Prime costs

$4

Overhead costs (75% fixed at a volume of 1,000 shirts)

$2

Gross Industries offers to buy 150 shirts with special lettering for $5 per shirt. The special lettering

will cost Chernin $25 in total.

Determine Chernin's incremental profit or loss if the Gross offer is accepted: $______________