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The Minton Company has gathered the following information for a unit of its most popular product: Direct materials $ 8 Direct labor 3 Overhead (40%

The Minton Company has gathered the following information for a unit of its most popular product:

Direct materials $ 8
Direct labor 3
Overhead (40% variable) 5
Cost to manufacture 16
Desired markup (50%) 8
Target selling price $ 24

The above cost information is based on 4,700 units. A foreign distributor has offered to buy 1,700 units at a price of $18 per unit. This special order would not disturb regular sales. Variable shipping and other selling expenses would be an additional $1 per unit for the special order. If the special order is accepted, Minton's operating profits will increase by:

$2,720.

$6,800.

$1,700.

$3,400.

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