Davis Kitchen Supply produces stoves for commercial kitchens. The costs to manufacture and market the stoves at the company's normal volume of 6,000 units per month are shown in the following table:

Unit manufacturing costs
Variable materials	$	59
Variable labor		84
Variable overhead		34
Fixed overhead		69
Total unit manufacturing costs				$	246
Unit marketing costs
Variable		34
Fixed		79
Total unit marketing costs					113
Total unit costs				$	359

Unless otherwise stated, assume that no connection exists between the situation described in each question; each is independent. Unless otherwise stated, assume a regular selling price of $388 per unit. Ignore income taxes and other costs that are not mentioned in the table or in the question itself.

Davis plans to produce 8,000 unis during March, which will use all available capacity. If it accepts the government order, it would lose 1,000 units normally sold to regular customers to a competitor. The overnment contract would reimburse its "share of March manufacturing costs" plus pay a $41,000 fixed fee (profit) (No variable marketing costs would be incurred on the government's units.) Assuming that e government's "share of March manufacturing costs" will be the proportionate foxed manufacturing cost, what impact would accepting the government contract have on March income? With Government Contract Impact Contract RegularGovernment Total Revenue Variable manufacturing costs Variable marketing costs Contribution margin Fixed manufacturing costs Fixed marketing costs Income