Thompson Company had the following results of operations for the past year:
- Sales (16,000 units at $10) $160,000
- Direct materials and direct labor $96,000
- Overhead (20% variable) 16,000
- Selling and administrative expenses (all fixed) 32,000 (144,000)
- Operating income $16,000
A foreign company (whose sales will not affect Thompson's market) offers to buy 4,000 units at $7.50 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $600 and selling and administrative costs by $300. If Thompson accepts the offer, its profits will: