Kyle Company manufactures and sells a single product called a Ret. Operating at capacity; the company can produce and sell 40,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $15 $ 600,000 Direct labor 8 320,000 Variable manufacturing overhead 3 120,000 Fixed manufacturing overhead 9 360,000 Variable selling expense 4 160,000 Fixed selling expense 6 240,000 Total cost $45 $1,800,000 The Rets normally sell for $80 each. Fixed manufacturing overhead is constant at $360,000 per year within the range of 25,000 through 40,000 Rets per year. Assume that due to a recession, Kyle Company expects to sell only 30,000 Rets through regular channels next year. A large retail chain has offered to purchase 10,000 Rets, if Kyle is willing to accept a 20% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Kyle Company would have to purchase a special machine to engrave the retail chains name on the 10,000 units. This machine would cost $20,000. Kyle Company has no assurance that the retail chain will purchase additional units in the future. Determine the impact on profits next year if this special order is accepted