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Question 10 (6 points) A new customer wants to purchase 800 units from Earth Treasures Inc. at a special price of $40 each. The normal

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Question 10 (6 points) A new customer wants to purchase 800 units from Earth Treasures Inc. at a special price of $40 each. The normal selling price is $80 per unit. Earth Treasures Inc. currently produces 5,000 units per year and has capacity to produce 6,000 units. Other data relating to this product is provided below: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Per Unit: $22 10 5 4 Earth Treasures would need to purchase a special tool costing $2,500 in order to fill this order This tool would have no other use once the order was completed Required: By how much will total profit increase or decrease if this order is accepted? (6 marks)

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