Exercise $4-37($Algo$)$ Special Orders $($LO $4-1,2)$

Alpine Luggage has a capacity to produce $430,000$ suitcases per year. The company is currently producing and selling $350,000$ units

per year at a selling price of $$404$ per case. The cost of producing and selling one case follows:

The company has received a special order for $30,000$ suitcases at a price of $$250$ per case. It will not have to pay any sales

commission on the special order, so the variable selling and administrative costs would be only $$51$ per suitcase. The special order

would have no effect on total fixed costs. The company has rejected the offer based on the following computations:

Required:

a$.$ What is the impact on profit for the year if Alpine accepts the special order? $($Enter your answers in thousands of dollars. Select

option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.$)$