It costs Garrison Company $9.50 of variable and $5.20 of fixed costs to produce one bathroom scale which normally sells for $19.70. A foreign wholesaler offers to purchase 2,600 scales at $12.20 each. Garrison will incur special shipping costs of $1.70 per scale if the order is accepted. Garrison has sufficient unused capacity to accommodate the order. If the special order is accepted, what will be the effect on net income?
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