A company manufactures and sells a single product. The variable cost of the product is $2.50 per unit and all production each month is sold at a price of $3.70 per unit. A potential new customer has offered to buy 6,000 units per month at a price of $2.95 per unit. The company has sufficient spare capacity to produce this quantity. If the new business is accepted, sales to existing customers are expected to fall by two units for every 15 units sold to the new customer.

What would be the overall increase in monthly profit which would result from accepting the new business?

(a) $1,740

(b) $2,220

(c) $2,340

(d) $2,700