Wear company is operating at 70% of its manufacturing capacity of 78,000 produce units per year. A customer has offered to buy an additional 18,000 units at $41 each and sell them outside the country so as not to compete with Company. The following data are available:
costs at 70% Capacity: Per unit. Total
Direct materials. $ 28.00 $1,528,800
Direct labor. 3.00. 163,800
Overhead( fixed and variable). 7.00. 382,200
Totals $38.00. $2,074,800
In producing 18,000 additional units, fixed overhead costs would remain at current level but increment variable overhead costs of $1.28 per unit would be incurred. What is the effect on total income if Wear company accepts this order?