The Arthur Company manufactures kitchen utensils. The company is currently producing well below its full capacity. The Benton Company has approached Arthur with an offer to buy 11,000 utensils at $0.70 each. Arthur sells its utensils wholesale for $0.82 each; the average cost per unit is $0.77, of which $0.10 is fixed costs. If Arthur were to accept Benton's offer, what would be the increase in Arthur's operating profits?

$770.

$330.

$1,320.

$550.