AB company's annual production capacity is 10,000 units. the company currently operates this year at 80% of total production capacity. Selling price per unit is $60. Cost data is below:

Direct Material: $10

Direct Labour: $6

VMOH: $3

FMOH: $6

Shipping costs: $9

Sales commission: $3.50 (5% of sales revenue)

FS&A: $16.50

Total Cost per Unit: $54.

Owner recieved a special order from Company B to purchase 6000 units at $40 per unit. This order will allow AB company to save $5 in DM costs. Sales comission will have to be paid.

a) whag is the change in operating income if special order is accepted?

b) ignoring everything above, supposed you can outsource the units abovr max capacity for $40. What is the change in operating income now?