Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 97,200 units per year is:

Direct materials $1.90

Direct labor $4.00

Variable manufacturing overhead $.60

Fixed manufacturing overhead $3.25

Variable selling and administrative expense $1.80

Fixed selling and administrative expense $3.00

The normal selling price is $18 per unit. The company's capacity is 114,000 units per year. An order has been received from a mail-order house for 1,400 units at a special price of $15.00 per unit. This order would not affect regular sales.

Required:

1. If the order is accepted, by how much will annual profits be increased or decreased? (The order will not change the company's total fixed costs.)