Carrot Company produces and sells 50,000 bags of carrot chips each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Bag	Total Costs
Variable production costs	$12	$600,000
Fixed production costs	$7	$350,000
Variable selling costs	$5	$250,000
Fixed selling and administrative costs	$3	$150,000
Total costs	$27	$1,350,000

Carrot marks up its prices 45% over full costs. It has surplus capacity to produce 20,000 more bags. A Swiss supermarket company has offered to purchase 15,000 bags of the product at a special price of $30 per bag. Carrot will incur additional shipping and selling costs of $1.50 per bag to complete this order.

Required: (a) What will be the effect on Carrot's operating income if it accepts this order? (b) Calculate the impact on the company's overall profitability.