Export order Berry Company produces and sells 30,000 cases of fruit preserves each year. The following information reflects a breakdown of its costs:

Berry marks up its prices 40% over full costs. It has surplus capacity to produce 15,000 more cases. A French supermarket company has offered to purchase 10,000 cases of the product at a special price of $40 per case. Berry will incur additional shipping and selling costs of $3 per case to complete this order. Required What will be the effect on Berry??s operating income if it accepts this order?

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COST ITEM COSTS PER CASE TOTAL COSTS Variable production costs Fixed production costs Variable selling costs Fixed selling and administrative costs Total costs $480,000 $16 8. 150,000 90,000 $960,000 $32