Lakeside Inc. produces a product that currently sells for $$72$ per unit. Current production costs per unit include direct materials, $$19$; direct labor, $$21$; variable overhead, $$14$; and fixed overhead, $$14.$ Product engineering has determined that certain production changes could refine the product quality and functionality. These new production changes would increase material and labor costs by $20\%$ per unit. Lakeside has received an offer from a nonprofit organization to buy $9,800$ units at $$55$ per unit. Lakeside currently has unused production capacity.

Required:

a$.$ Calculate the effect on Lakeside's operating income of accepting the order from the nonprofit organization.

b$.$ Should Lakeside accept this special sales order?