Banana Company produces and sells 20,000 cans of banana puree each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Can	Total Costs
Variable production costs	$14	$280,000
Fixed production costs	$10	$200,000
Variable selling costs	$7	$140,000
Fixed selling and administrative costs	$5	$100,000
Total costs	$36	$720,000

Banana marks up its prices 40% over full costs. It has surplus capacity to produce 10,000 more cans. An Italian supermarket company has offered to purchase 7,000 cans of the product at a special price of $39 per can. Banana will incur additional shipping and selling costs of $3 per can to complete this order.

Required: (a) What will be the effect on Banana's operating income if it accepts this order? (b) Prepare a break-even analysis for the additional order.