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Pilgrim Corporation manufactures a number of products. The company's predetermined overhead rate is $24 per direct working hour, calculated using the following budgeted data: Variable

Pilgrim Corporation manufactures a number of products. The company's predetermined overhead rate is $24 per direct working hour, calculated using the following budgeted data:

Variable production load$84.000
Fixed production load$420.000
Direct working hours21.000

Management is considering placing a special order for 780 N89E products at $72 each. The normal selling price of N89E is $83, and the unit cost is determined as follows:

Direct materials$45.00
direct labor16.00
Production overhead applied24.00
unit product cost$85.00


Normal sales of this and other products will not be affected if a special order is accepted. The company has sufficient excess capacity to manufacture additional units. Suppose direct labor is a variable cost, the variable production overhead is indeed directly due to labor-hours, and the total fixed production overhead is not affected by the special order.


Necessary:

What will be the impact on the company's overall profit if the special order is accepted?

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