A Finnish company produces cross$-$country ski poles that it sells for $$32$ a pair. Operating at capacity the company can produce $50,000$ pairs of ski poles a year. Costs associated with this level of production and sales are given below:

Direct materials.... $12600,000$

Direct Labor $3150,000$

Variable manufacturing overhead $150\mathrm{.}000$

Fixed manufacturing overhead $5250,000$

Variable selling expenses $2100,000$

Fixed selling expenses $4200,000$

Total Cost $$27$ $$1,350,000$

i$)$ The Finnish army would like to make a one$-$time$-$only purchase of $10,000$ pairs of ski poles for its mountain troops. The army would pay a fixed fee of $$4$ per pair, and in addition it would reimburse the company for its unit manufacturing costs $($both fixed and variable$).$ Due to a recession, the company would sell only $40,000$ pairs of ski poles this year. The company would not incur its usual variable selling expenses with this special order.

If the company accepts the army's offer, by how much would net operating income increase or decrease from what it would be if only $40,000$ pairs of ski poles were produced and sold during the year?

ii$)$ Assume the same situation as described in $(1)$ above, except that the company is already operating at capacity and could sell $50,000$ pairs of ski poles through regular channels. Thus, accepting the army's offer would require giving up sales of $10,000$ pairs at the normal price of $$32$ a pair. If the army's offer is accepted, by how much will net operating income increase or decrease from what it would be if the $10,000$