Kintectics Ltd can manufacture 480,000 electrical pumps a year at a variable cost of $15 per pump and fixed costs of $500,000. Kintectics Ltd budgeted that it can sell 400,000 at $25 each. An additional order of 100,000 was received, but at a discount of 35% from the regular price.

If Kintectics Ltd accepts the special order, profit before taxes will:

Decrease by $75,000Increase by $75,000Increase by $25,000Some other amount