St. Jude Medical (SJM) manufactures two products: pacemakers and defibrillators. The company has a maximum capacity of 10,000 machine hours. Price and costs for each product are as follows:

Pacemakers Defibrillators

Selling price per unit $2,500 $3,300

Variable costs per unit

Direct materials $300 $350

Direct labour $100 $120

Manufacturing overhead costs* $300 $440

* Variable manufacturing overhead costs are applied at a rate of $400 per machine hour.

A potential new client has offered $2,500 per unit to SJM for a special order of 250 defibrillators. These 250 units would incur the following production costs and time:

Direct materials $80,000

Direct labour $30,000

Machine hours 225

Required: Assume that SJM has enough excess capacity to produce the special order. Should SJM accept the special order? Calculate the amount by which their income would increase or decrease if SIM accept the special order?