A company's normal selling price is $27 per unit. A breakdown of manufacturing cost per unit is provided below:

Direct materials	$6.00
Direct labour	$7.00
Variable manufacturing overhead	$1.40
Fixed manufacturing overhead	$3.10
Total manufacturing cost	$17.5

The company receives a special order at $14 per unit for 3,000 units. The company has excess capacity and regular sales will remain the same with or without the order.

1.Indicate whether the company's operating income will increase or decrease if it accepts and how much it would increase or decrease by

2. Should the company accept this special order? yes or no