Nardin Outfitters has a capacity to produce $20,000$ of their special arctic tents per year. The company is currently producing and selling $5,000$ tents per year at a selling price of $$1,700$ per tent. The cost of producing and selling one tent follows:

Variable manufacturing costs $ $600$

Fixed manufacturing costs $170$

Variable selling and administrative costs $160$

Fixed selling and administrative costs $130$

Total costs $ $1,060$

The company has received a special order for $2,100$ tents at a price of $$760$ per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $$61$ 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 $ $760$

Variable manufacturing costs $600$

Fixed manufacturing costs $170$

Variable selling and administrative costs $61$

Fixed selling and administrative costs $130$

Net profit $($loss$)$ per case $ $(201)$

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?