Brown Company budgeted sales of 800,000 calculators at $40 per unit last year. Variable manufacturing costs were budgeted at $25 per unit, and fixed manufacturing costs at $10 per unit. A special order for 50,000 calculators at $30 each was received by Brown in July. Brown has sufficient plant capacity to manufacture the additional quantity without incurring any additional fixed manufacturing costs; however, the production would have to be done on an overtime basis at an estimated additional cost of $3 per calculator. Acceptance of the special order would not affect Browns normal sales and no selling expenses would be incurred.

Required:

Determine the effect on operating income if the special order is accepted. Show all computations.