The following information relates to the Jax Company for the upcoming year.

		Amount		Per Unit
Sales		$8,600,000		$32.00
Cost of goods sold		6,700,000		22.00
Gross margin		1,900,000		10.00
Operating expenses		720,000		2.70
Operating profit		$1,180,000		$ 7.30

The cost of goods sold includes $2,700,000 of fixed manufacturing overhead; the operating expenses include $320,000 of fixed marketing expenses. A special order offering to buy 51,200 units for $27.00 per unit has been made to Jax. Fortunately, there will be no additional operating expenses associated with the order; however, Jax is operating at full capacity. How much will operating profits increase if Jax accepts the special order?

$373,760.

$203,371.

$747,520.

$544,149.

Operating profits will not increase as a result of accepting the special