Costa Company has a capacity of 40000 units per year and is currently selling 35000 for $400 each. Barton Company has approached Costa about buying 2000 units for only $300 each. The units would be packaged in bulk, saving Costa $20 per unit when compared to the normal packaging cost. Normally, Costa has a variable cost of $280 per unit. The annual fixed cost of $2,000,000 would be unaffected by the special order. What would be the impact on profits if Costa were to accept this special order?

Profits would increase $40000

Profits would increase $60000

Profits would decrease $200000

Profits would increase $80000