Q4P-13 The following data relate to a popular book sold by a publisher:

Fixed Costs:

Copy Editing $

6,330

Artwork $

2,497

Typesetting $

70,268

Variable Costs per copy:

Printing and Binding $

3.48

Bookstore Discounts $

4.45

Sales Commissions $

0.78

Authors Royalties $

2.22

Each novel copy sells for $

23

Last month the company sold in copies:

10,820

Production manager suggests to buy an additional machine for

$14,500

cost per month and will decrease the variable cost by

$3.75

per copy

Required: What is the profit impact to the publisher if the above suggestion is adopted.

Must show your profit impact method calculation to receive marks and round your answer to the nearbest dollar.