Avocado Company produces and sells 40,000 bottles of avocado oil each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Bottle	Total Costs
Variable production costs	$15	$600,000
Fixed production costs	$9	$360,000
Variable selling costs	$6	$240,000
Fixed selling and administrative costs	$3	$120,000
Total costs	$33	$1,320,000

Avocado marks up its prices 45% over full costs. It has surplus capacity to produce 15,000 more bottles. An Indian supermarket company has offered to purchase 10,000 bottles of the product at a special price of $37 per bottle. Avocado will incur additional shipping and selling costs of $1 per bottle to complete this order.

Required: (a) What will be the effect on Avocado's operating income if it accepts this order? (b) Determine the incremental profit from accepting the order.