The following information relates to a product produced by Orca Company:

Direct materials	$	80
Direct labor		44
Variable overhead		42
Fixed overhead		46
Unit cost	$	212

Fixed selling costs are $4,000,000 per year. Although production capacity is 650,000 units per year, Orca expects to produce only 520,000 units next year. The product normally sells for $230 each. A customer has offered to buy 60,300 units for $210 each. The customer will pay the transportation charge on the units purchased. If Orca accepts the special order, the effect on operating profits would be a:

$361,800 increase.

$120,600 increase.

$1,206,000 decrease.

$2,653,200 increase.