Duffy Dogproduces a hard disk drive that sells for $172per unit. The cost of producing25,000drives in the prior year was:

Direct material

$700,000

Direct labor

475,000

Variable overhead

225,000

Fixed overhead

1,475,000

total cost

$2,875,000

At the start of the current year, the company received an order for3,150drives from a computer company in China. Management ofDuffy Doghas mixed feelings about the order. On one hand, they welcome the order because they currently have excess capacity. Also, this is the company's first international order. On the other hand, the company in China is willing to pay only $134per unit.

What will be the effect on profit of accepting the order?(Enter decrease in profit using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Profit will

select between increase and decrease

increase

decrease

by $

enter a dollar amount

.