Net increase in profits =

2. Refer to the original data. Assume again that Polaski Company expects to sell only 16,000 Rets through regular channels next year. The Canadian Forces would like to make a one-time-only purchase of 8,000 Rets. The Forces would pay a fixed fee of $1.40 per Ret, and in addition would reimburse Polaski Company for all costs of production (variable and fixed) associated with the units. Since the Forces would pick up the Rets with its own trucks, there would be no variable selling expenses of any type associated with this order. If Polaski Company accepts this order, by how much will profits be increased or decreased for the year? (Do not round intermediate calculations.) Net increase in profits