Tri Townproduces a hard disk drive that sells for $171per unit. The cost of producing25,000drives in the prior year was:

Direct material

$ 725,000

Direct labor

450,000

Variable overhead

200,000

Fixed overhead

1,475,000

Total cost

$ 2,850,000

At the start of the current year, the company received an order for2,770drives from a computer company in China. Management ofTri Townhas mixed feelings about the order. On one hand, they welcome the order because they currently have excess capacity. Also, this is the company's first international order. On the other hand, the company in China is willing to pay only $123per unit.

What will be the effect on profit of accepting the order?(Enter decrease in profit using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Q: profit will Increase or decrease

Q How much $