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Harcourt Manufacturing ( HM ) has the capacity to produce 1 1 , 4 0 0 fax machines per year. HM currently produces and sells

Harcourt Manufacturing (HM) has the capacity to produce 11,400 fax machines per year. HM currently produces and sells 7,700 units per year. The fax machines normally sell for $170 each. Modem Products has offered to buy 2,700 fax machines from HM for $95 each. Unit-level costs associated with manufacturing the fax machines are $29 each for direct labor and $54 each for direct materials. Product-level and facility-level costs are $57,000 and $72,000, respectively. How much would profit increase (decrease) if HM accepted this special order?

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