Lakeside Inc. produces a product that currently sells for $40.00 per unit. Current production costs per unit include direct materials, $11; direct labor, $13; variable overhead, $5.50; and fixed overhead, $5.50. 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 8,100 units at $31.50 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. Increase in operating income