The machining division of ITA International has a capacity of2,150units. Its sales and cost data are:

Selling price per unit $75

Variable manufacturing costs per unit 20

Variable selling costs per unit 7

Total fixed manufacturing overhead 187,100

The machining division is currently selling1,950units to outside customers, and the assembly division of ITA International wants to purchase400units 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 $7/unit. If the assembly division is currently buying from an outside supplier at $71per unit, what will be the effect on overall company profits if internal sales for400units take place at the optimum transfer price?

The company profits would

select between increase or decrease

by$

enter the dollar amount of the profits' change

.