Trescott Company had the following results of operations for the past year:
Sales (20,000 units at $22) $440,000
Direct materials and direct labor $200,000
Overhead (40% variable) 100,000
Selling and Administrative expenses (all fixed) 92,000 (392,000)
Operating income $ 48,000
A foreign company (whose sales will not affect Trescott's market) offers to buy 3,000 units at $17.00 per unit. In addition to the variable manufacturing costs, selling these units would increase fixed overhead by $500 and selling and administrative costs by $1,000. If Trescott accepts the offer, its profits will increase (decrease) by: