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

	Amount		Per Unit
Sales	$	8,400,000	$	21.00
Cost of goods sold		5,400,000		13.50
Gross margin		3,000,000		7.50
Operating expenses		740,000		1.85
Operating profit	$	2,260,000	$	5.65

The cost of goods sold includes $1,475,000 of fixed manufacturing overhead; the operating expenses include $210,000 of fixed marketing expenses. A special order offering to buy 51,100 units for $18.50 per unit has been made to Tram. Fortunately, there will be no additional operating expenses associated with the order and Tram has sufficient capacity to handle the order. How much will operating profits be increased if Tram accepts the special order?

$288,715.

$201,334.

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

$376,096.

$577,430.