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Watrous Company produces a single unit that it sells for $29 per unit. Watrous has the capacity to produce 34,000 units of this product each

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Watrous Company produces a single unit that it sells for $29 per unit. Watrous has the capacity to produce 34,000 units of this product each month and is currently selling 31,000 units each month. The costs associated with each unit are given below: direct materials $4.60 direct labor $3.90 variable overhead $2.10 fixed overhead $3.30 variable selling costs $5.20 fixed selling costs $1.80 Watrous Company received a special order from a customer who wants to purchase 12,000 units of this product in the coming month at a reduced price of $25 per unit. Watrous Company has determined there would be no selling expenses in connection with this special order. However, there would be an increased direct material cost of $3.20 per unit for the special order units. Calculate the increase in Watrous Company's net income if they accepts the special order

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