Coat Co. sells product P at a price of $38 a unit. The per-unit cost data are: direct materials $8, direct labor $10, and overhead $12 (25% fixed and 75% variable). Coat has sufficient capacity to accept a special order for 40,000 units just received. Variable selling costs associated with this order would be $3 per unit.

1) Minimum selling price?

2) At a selling price of $33 per unit, operating income will increase or decrease by how much?