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MarxMetal Works received an offer from a big-box retail company to purchase2,760metal outdoor tables for $200each.MarxMetal Works accountants determine that the following costs apply to

MarxMetal Works received an offer from a big-box retail company to purchase2,760metal outdoor tables for $200each.MarxMetal Works accountants determine that the following costs apply to the tables:

Direct material $118

Direct labor 46

Manufacturing overhead 65

Total $229

Of the $65of overhead, $13is variable and $52relates to fixed costs. The $52of fixed overhead is allocated as $1.02per direct labor dollar.

(a)What will be the real effect on profit if the order is accepted?

The profit will

select an option

increase

or

decrease

by $ ______________enter a dollar amount

.

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