The following information relates to the Magna Company for the upcoming year, based on 402,000 units.

	Amount				Per Unit
Sales	$	16,884,000			$	42.00
Cost of goods sold		9,648,000				24.00
Gross margin		7,236,000				18.00
Operating expenses		623,100				1.55
Operating profits	$	6,612,900			$	16.45

The cost of goods sold includes $1,520,000 of fixed manufacturing overhead; the operating expenses include $132,000 of fixed marketing expenses. A special order offering to buy 82,000 units for $24.30 per unit has been made to Magna. Fortunately, there will be no additional operating 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?

Multiple Choice

• $159,520.

• $197,020.

• $234,520.

• $259,520.