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Markson Company had the following results of operations for the past year: Sales (8,000 units at $19.20) $153,600 Variable manufacturing costs $82,800 Fixed manufacturing costs

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

Sales (8,000 units at $19.20) $153,600
Variable manufacturing costs $82,800
Fixed manufacturing costs 14,200
Variable selling and administrative expenses 8,800
Fixed selling and administrative expenses 19,200 (125,000)
Operating income $28,600

A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $12.80 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $1,520 for the purchase of special tools. If Markson accepts this additional business, its profits will

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