Marathon Manufacturing, which produces running shoes, has enough idle capacity available to accept a special order of 1,000 pairs of shoes at \(\$ 24\) per pair. The following data has been obtained from their budget for the current year.

No additional selling expenses will be incurred due to the-special order.
{Required:}
If the special order is accepted, what will be the effect on operating income?

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Per Unit Total Sales............ $37.50 $3,750,000 Variable manufacturing costs................ (18.75) (1,875,000) Fixed manufacturing costs..................... (5.25) (525,000) Gross profit......... 13.50 1,350,000 Variable selling expenses..... (5.40) (540,000) Fixed selling expenses... (4.35) (435,000) Operating income....... $ 3.75 $ 375,000