Nardin Outfitters has a capacity to produce 16,000 of their special arctic tents per year. The company is currently producing and selling 5,000 tents per year at a selling price of $1,300 per tent. The cost of producing and selling one tent follows:

Variable manufacturing costs	$ 520
Fixed manufacturing costs	130
Variable selling and administrative costs	120
Fixed selling and administrative costs	90
Total costs	$ 860

The company has received a special order for 1,300 tents at a price of $680 per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $53 per tent. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations:

Selling price per case	$ 680
Variable manufacturing costs	520
Fixed manufacturing costs	130
Variable selling and administrative costs	53
Fixed selling and administrative costs	90
Net profit (loss) per case	$ (113)

Required:

a. What is the impact on profit for the year if Nardin Outfitters accepts the special order?

b. Do you agree with the decision to reject the special order?