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Papaya Juice Delights produces 90,000 cases annually. Each case costs: Variable production: $20 Fixed production: $9 Variable selling: $7 Fixed selling/admin: $5 Total cost: $41

Papaya Juice Delights produces 90,000 cases annually. Each case costs:

Variable production: $20

Fixed production: $9

Variable selling: $7

Fixed selling/admin: $5

Total cost: $41 per case

Papaya Juice marks up prices by 25% over full costs. The company can produce an additional 20,000 cases. A Japanese retailer has offered to buy 15,000 cases at $55 per case with additional shipping and selling costs of $4 per case. Calculate the effect on Papaya Juice's gross profit if it accepts this order.

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