What is the impact on profit for the year if Nardin Outfitters accepts the special order? $($Enter your answers in thousands

rounded to $1$ decimal place. $($i$.$e$.,5,400,400$ should be entered as $5,400\mathrm{.}4).$ Select option "higher" or "lower", keeping Status

Quo as the base. Select "none" if there is no effect.$)$Nardin Outfitters has a capacity to produce $18,500$ of their special arctic tents per year. The company is currently producing and selling $5,000$ tents per year at a selling price of $$1,550$ per tent. The cost of producing and selling one tent follows:

Variable manufacturing costs $ $570$

Fixed manufacturing costs $155$

Variable selling and administrative costs $145$

Fixed selling and administrative costs $115$

Total costs $ $985$

The company has received a special order for $1,800$ tents at a price of $$730$ per tent from Chipman Outdoor Center. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $$58$ per tent. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations:

Selling price per case $ $730$

Variable manufacturing costs $570$

Fixed manufacturing costs $155$

Variable selling and administrative costs $58$

Fixed selling and administrative costs $115$

Net profit $($loss$)$ per case $ $(168)$

Required:

a$.$ What is the impact on profit for the year if Nardin Outfitters accepts the special order?

b$.$ Do you agree with the decision to reject the special order?