The machining division of ITA International has a capacity of 2,050 units. Its sales and cost data are:

	Selling price per unit		$85
	Variable manufacturing costs per unit		30
	Variable selling costs per unit		6
	Total fixed manufacturing overhead		200,800

The machining division of ITA International has a capacity of 2,050 units. Its sales and cost data are: Selling price per unit $85 Variable manufacturing costs per unit 30 Variable selling costs per unit 6 Total fixed manufacturing overhead 200,800 The machining division is currently selling 1,850 units to outside customers, and the assembly division of ITA International wants to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $6/unit. If the assembly division is currently buying from an outside supplier at $78 per unit, what will be the effect on overall company profits if internal sales for 400 units take place at the optimum transfer price? The company profits would select between an increase or decrease increase by $enter the dollar amount of the profits' change.

The company profits would select between increase or decrease by $enter the dollar amount of the profits' change