1. Maria Mahew is the CFO for Ford Motor Co., and she has been tasked with determining whether to insource production of the transmissions in the new model of the Ford Escape. Each transmission is currently purchased from an outside company at a cost of $1,800. Maria has determined the following costs would be incurred per transmission if Ford were to make them in-house:

	Per Unit
Direct Materials	700
Direct Labor	300
Variable Overhead	500
Fixed Overhead	1,000

If half of the above fixed overhead is allocated cost, what would be the effect on profit for Ford to insource its production, assuming 300,000 transmissions are needed in a given year?