Cherry Company produces and sells 55,000 jars of cherry jam each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Jar	Total Costs
Variable production costs	$11	$605,000
Fixed production costs	$8	$440,000
Variable selling costs	$4	$220,000
Fixed selling and administrative costs	$3	$165,000
Total costs	$26	$1,430,000

Cherry marks up its prices 45% over full costs. It has surplus capacity to produce 20,000 more jars. A Mexican supermarket company has offered to purchase 12,000 jars of the product at a special price of $30 per jar. Cherry will incur additional shipping and selling costs of $1.50 per jar to complete this order.

Required: (a) What will be the effect on Cherry's operating income if it accepts this order? (b) Determine the incremental profit from accepting the order.