Blazer Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently, the company is operating at 90 percent of capacity. A chain of drugstores has offered to buy 30,000 boxes of Blazers blue-bordered thank-you notes if the box can be customized with the drugstore chains logo. While the normal selling price is $6.00 per box, the chain has offered just $3.10 per box. Blazer can accommodate the special order without affecting current sales. Unit cost information for a box of thank-you notes follows:

Direct materials	$1.87
Direct labor	0.33
Variable overhead	0.08
Fixed overhead	2.10
Total cost per box	$4.38

Fixed overhead is $420,000 per year and will not be affected by the special order. Normally, there is a commission of 5 percent of price; this will not be paid on the special order since the drugstore chain is dealing directly with the company. The special order will require additional fixed costs of $14,300 for the design and setup of the machinery to stamp the drugstore chains logo on each box.

1. The operating income would increase by what: