M Recording produces discs for home entertainment. The discs are sold to retail stores for P50. Manufacturing and other costs are as follows:

Variable costs per unit Fixed costs per unit

Direct materials P15.00 Factory overhead P20,000

Direct labor 7.50 Selling and Adm. 10,000

Factory overhead 5.00 Total P30,000

Distribution 2.50

Total P30.00

The variable distribution costs are for transportation to the retail stores. The current production and sales volume is 20,000 per year. Capacity is 25,000 units per year. The discs are currently unpackaged. Packaging them individually would increase costs by P2.00 per unit. However, the units could then be sold for P55. All other information remains the same as the original data. What is the effect on profits if M Recording packages the discs, increase (decrease) by?