Pietarsaari Oy, a Finnish company, produces cross-country ski poles that it sells for 32 a pair. (The Finnish unit of currency, the euro, is denoted by .) Operating at capacity, the company can produce 60,000 pairs of ski poles a year. Costs associated with this level of production and sales are given below:

Per Pair

Total

Direct materials

9

540,000

Direct labor

3

180,000

Variable manufacturing overhead

1

60,000

Fixed manufacturing overhead

5

300,000

Variable selling expense

1

60,000

Fixed selling expense

4

240,000

Total cost

23

1,380,000

2.

Assume the same situation as described in (1) above, except that the company is already operating at capacity and could sell 60,000 pairs of ski poles through regular channels. Thus, accepting the army's offer would require giving up sales of 9,600 pairs at the normal price of 32 a pair. If the army's offer is accepted, by how much will net operating income increase or decrease from what it would be if the 9,600 pairs were sold through regular channels? (Input the amount as a positive value. Omit the "" sign in your response.)