Jolly Orange Company sells citrus fruit from its website.Protecting the fruit during shipping is critical to the company's success.Accordingly, Jolly Ollie fabricates its own shipping containers.Jolly Orange ships 1,450,000 containers of fruit annually.Total costs to fabricate that many containers are provided at left.

A major paper products company has offered to supply all of the containers that Jolly Orange needs at a price of $1.67 per container.

What will be the effect on pretax income If Jolly Orange accepts this offer?Show your work.

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