Apple Company produces and sells 35,000 cartons of apple juice each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Carton	Total Costs
Variable production costs	$15	$525,000
Fixed production costs	$8	$280,000
Variable selling costs	$4	$140,000
Fixed selling and administrative costs	$3	$105,000
Total costs	$30	$1,050,000

Apple marks up its prices 50% over full costs. It has surplus capacity to produce 20,000 more cartons. A British supermarket company has offered to purchase 12,000 cartons of the product at a special price of $35 per carton. Apple will incur additional shipping and selling costs of $1 per carton to complete this order.

Required: (a) What will be the effect on Apple's operating income if it accepts this order? (b) Calculate the total additional revenue and costs associated with the order.