Best Industries manufactures coffee mugs. When 28,000 mugs are produced, the costs per mug are:

Direct materials $0.60

Direct manufacturing labor 3.00

Variable manufacturing overhead 1.20

Fixed manufacturing overhead 1.90

Variable selling 0.98

Fixed selling 1.40

Total $9.08

The mugs normally sell for $16 each. Best Industries has received a special order for 4,000 mugs at $8 per mug. Best Industries has excess capacity.

Required: Should the special order be accepted? Compute the amount by which the operating income would change if the order were accepted.