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WallaWallaMetal Works received an offer from a big-box retail company to purchase3,540metal outdoor tables for $252each.WallaWallaMetal Works accountants determine that the following costs apply to

WallaWallaMetal Works received an offer from a big-box retail company to purchase3,540metal outdoor tables for $252each.WallaWallaMetal Works accountants determine that the following costs apply to the tables:

Direct material$157 Direct labor59 Manufacturing overhead82 Total$298

Of the $82of overhead, $16is variable and $66relates to fixed costs. The $66of fixed overhead is allocated as $1.28per direct labor dollar.

(a)What will be the real effect on profit if the order is accepted?

The profit will

select an option

increase

decrease

by $

enter a dollar amount

.

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