The Engine Guys produces specialized engines for snow climber buses. The companys normal monthly production volume is 5,000 engines, whereas its monthly production capacity is 10,000 engines. The current selling price per engine is $900. The cost per unit of manufacturing and marketing the engines at the normal volume is as follows:

	Costs per Unit for Engines
Manufacturing costs:
Direct materials	$	92
Direct labour		144
Variable overhead		26
Fixed overhead		144
Subtotal	$	406
Marketing costs:
Variable	$	45
Fixed		99
Subtotal		144
Total unit cost	$	550

1-a. The Provincial Bus Company wishes to purchase 660 engines in October. The bus company is willing to pay a fixed fee of $600,000 and reimburse The Engine Guys for all manufacturing costs incurred to manufacture 660 motors. October is a busy month for The Engine Guys, and there are sufficient orders to operate at 100% capacity utilization. There will be no variable marketing costs on this government contract.

Compute the incremental benefit of the contract.