Question 6 Saxon Company produces a single product X. Operating at capacity, the company can produce 50,000 units of per year, and costs associated with this level of capacity are as follows: Unit Total Direct Materials $12 $600,000 Direct Labor 150,000 Variable Overhead 50,000 Fixed Overhead 250,000 Variable selling expenses 100,000 Fixed selling expenses 200,000 Total cost per unit $1,350,000 The selling price of X is $32 each. A government agency would like to make a one-time-only purchase of 10,000 units of X. The agency would reimburse Saxon Company for all costs of production (i.e., variable and fixed manufacturing costs) associated with its order and pay $4 per units additionally. There would be no variable selling expenses associated with this offer. Assume that Saxon Company currently produces and sells 40,000 units of X. What is the impact of the government agency's special order on the company's profit