Budget Tax Service, Inc., prepares tax returns for small businesses. The cost of preparing 800 tax returns in the prior year was:
| Direct labor |
|
$ |
330,400 |
| Variable overhead |
|
|
284,800 |
| Fixed overhead |
|
|
243,000 |
| Total cost |
|
$ |
858,200 |
At the start of the current year, the company received an offer from Advantage Business, a firm that provides bundled services to businesses. Advantage wants Budget Tax Service to prepare tax returns for its 140 small-business clients. Budget Tax Service has the capacity to prepare up to 1,000 returns in a given year, so this special order would not take away revenue from any of Budget Tax Service's current clients. Advantage is willing to pay $940 per tax return.
What will be the effect on Budget Tax Service's profit if it agrees to prepare returns for the 140 clients of Advantage Business?
Profit will 
____________ (increase or decrease) by $____________ per year.