Alpine Luggage has a capacity to produce 440,000 suitcases per year The company is currently producing and selling 360.000 units per year at a selling price of $396 per case. The cost of producing and selling one case follows: variable manufacturing costs Fixed Manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs $ 160 40 26 22 $ 298 The company has received a special order for 30,000 suitcases at a price of $249 per case. It will not have to pay any sales commission on the special order so the vartable 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: $249 selling price per case Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Net profit (Loss) per case 160 40 51 22 $(24) Required: 2. 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.) (All revenues and costs in 5000) Status Quo Alternative 360,000 Units 190,000 Units Difference 5 142.560 5 150 030 5 7470 higher Sales revenue Variable costs Manufacturing Seling and administrative Contribution margin Fored costs Operating profit 57.500 27 360 56 6005 22 320 34 2005 62.400 28,890 58,7405 5 4,800 higher 1530 higher 1,140 higher none 5 22.320 36.420 $ 214 higher b. Do you agree with the decision to reject the special order? Yes