Bell Pepper Company produces and sells 50,000 bags of bell pepper slices each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Bag	Total Costs
Variable production costs	$13	$650,000
Fixed production costs	$9	$450,000
Variable selling costs	$4	$200,000
Fixed selling and administrative costs	$2	$100,000
Total costs	$28	$1,400,000

Bell Pepper marks up its prices 50% over full costs. It has surplus capacity to produce 20,000 more bags. A Danish supermarket company has offered to purchase 12,000 bags of the product at a special price of $32 per bag. Bell Pepper will incur additional shipping and selling costs of $1 per bag to complete this order.

Required: (a) What will be the effect on Bell Pepper's operating income if it accepts this order? (b) Analyze the effect on the company's overall contribution margin.