Rowe Tool and Die $($RTD$)$ produces metal fittings as a supplier to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD$.$ RTD expects to sell $47,000$ units during the quarter. RTD carries no inventories.

Amount Per Unit

Sales revenue $ $1,250,200$ $ $26\mathrm{.}60$

Costs of fitting produced $958,80020\mathrm{.}40$

Gross profit $ $291,400$ $ $6\mathrm{.}20$

Administrative costs $220,9004\mathrm{.}70$

Operating profit $ $70,500$ $ $1\mathrm{.}50$

Fixed costs included in this income statement are $$305,500$ for depreciation on plant and machinery and miscellaneous factory operations and $$95,500$ for administrative costs. RTD has received a request for $10,000$ fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD$,$ although they have been a local company for many years. Endicott has offered to pay $$20\mathrm{.}20$ per unit. RTD can easily produce the $10,000$ units with its existing capacity. Production of the $10,000$ units will incur all variable manufacturing costs but no fixed manufacturing costs. No administrative costs will be incurred because of the order.

Required:

a$.$ What impact would accepting this special order have on operating profit?What impact would accepting this special order have on operating profit? $($Enter your answers in thousands rounded to $1$ decimal place. $($i$.$e$.,5,400,400$ should be entered as $5,400\mathrm{.}4).$ Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.$)$

Costs and Revenues

$($Thousands of Dollars$)$

Status Quo $47,000$ Units Alternative $57,000$ Units Difference

Sales revenue

Variable costs:

Production

Administrative

Contribution margin

Fixed costs

Operating profit