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Markson Company had the following results of operations for the past year: Contribution margin income statement Per Unit Annual Total Sales (10,600 units) $ 20.00

Markson Company had the following results of operations for the past year:

Contribution margin income statement Per Unit Annual Total

Sales (10,600 units) $ 20.00 $ 212,000

Variable costs

Direct materials 4.25 45,050

Direct labor 6.00 63,600

Overhead 2.00 21,200

Contribution margin 7.75 82,150

Fixed costs

Fixed overhead 4.25 45,050

Income $ 3.50 $ 37,100

A foreign company offers to buy 3,300 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $2,640 for the purchase of special tools. Marksons annual productive capacity is 15,900 units. If Markson accepts this additional business, its profits will increase or decrease by how much?

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