Hartford, Inc. manufactures a single product. Shown are projected revenues and costs based on last year's income statement (8,000 units) and practical capacity (10,000 units). The costs are either variable, fixed, or mixed (part variable and part fixed.) You need to figure out what the cost type is based on the cost behavior.

Last Year

(8,000 units)Practical Capacity

(10,000 units)TotalPer UnitTotalPer UnitRevenue$800,000$100.00$1,000,000$100.00Costs:Direct Material$200,000$25.00$250,000$25.00Direct Labor$160,000$20.00$200,000$20.00Mfg. Overhead$180,000$22.50$200,000$20.00Selling Expenses$40,000$5.00$50,000$5.00Admin. Expenses$50,000$6.25$50,000$5.00Total Costs$630,000$78.75$750,000$75.00Pre-Tax Profit$170,000$250,000

Required

1. Assume that Hartford expects to sell the same number of units as last year in their normal distribution channels (8,000 units). They have received an offer from a one-time customer (not part of their normal customer mix) to buy 1,000 units (additional to their expected normal sales) at a price of $71. By how many dollars wouldpre-tax profitincrease or decrease if Hartford accepts the special order?