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Cane Company manufactures two products called Alpha and Beta that sell for $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 units of each product. Its unit costs for each product at this level of activity are given below:

	Alpha	Beta
Direct materials	$	30		$	12
Direct labour		21			20
Variable manufacturing overhead		8			6
Traceable fixed manufacturing overhead		17			19
Variable selling expenses		13			9
Common fixed expenses		16			11
Cost per unit	$	105		$	77

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.

3. Assume that Cane expects to produce and sell 81,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 11,000 additional Alphas for a price of $84 per unit. If Cane accepts the customers offer, how much will its profits increase or decrease?