Beetroot Company produces and sells 25,000 bottles of beetroot juice each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Bottle	Total Costs
Variable production costs	$12	$300,000
Fixed production costs	$7	$175,000
Variable selling costs	$5	$125,000
Fixed selling and administrative costs	$3	$75,000
Total costs	$27	$675,000

Beetroot marks up its prices 45% over full costs. It has surplus capacity to produce 10,000 more bottles. A Portuguese supermarket company has offered to purchase 8,000 bottles of the product at a special price of $32 per bottle. Beetroot will incur additional shipping and selling costs of $1 per bottle to complete this order.

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