The following information relates to the Magna Company for the upcoming year, based on 475,000 units. Amount Per Unit Sales $ 4,750,000 $ 10.00 Cost of goods sold 3,800,000 8.00 Gross margin 950,000 2.00 Operating expenses 356,250 0.75 Operating profits $ 593,750 $ 1.25 The cost of goods sold includes $1,425,000 of fixed manufacturing overhead; the operating expenses include $118,750 of fixed marketing expenses. A special order offering to buy 80,000 units for $9.00 per unit has been made to Magna. Fortunately, there will be no additional fixed expenses associated with the order and Magna has sufficient capacity to handle the order. How much will operating profits be increased if Magna accepts the special order? Note: Round your answer to the nearest whole dollar. Multiple Choice

$305,000.

$280,000.

$242,500.

$205,000.