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KennelMetal Works received an offer from a big-box retail company to purchase3,240metal outdoor tables for $232each.KennelMetal Works accountants determine that the following costs apply to

KennelMetal Works received an offer from a big-box retail company to purchase3,240metal outdoor tables for $232each.KennelMetal Works accountants determine that the following costs apply to the tables:

Direct material$142

Direct labor54

Manufacturing overhead76

Total$272

Of the $76of overhead, $15is variable and $61relates to fixed costs. The $61of fixed overhead is allocated as $1.18per direct labor dollar.

(a)What will be the real effect on profit if the order is accepted?

The profit will

increase or

decrease

by $

.

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