Lemon Company produces and sells 25,000 bottles of lemonade each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Bottle	Total Costs
Variable production costs	$12	$300,000
Fixed production costs	$8	$200,000
Variable selling costs	$6	$150,000
Fixed selling and administrative costs	$4	$100,000
Total costs	$30	$750,000

Lemon marks up its prices 45% over full costs. It has surplus capacity to produce 15,000 more bottles. A Dutch supermarket company has offered to purchase 10,000 bottles of the product at a special price of $32 per bottle. Lemon will incur additional shipping and selling costs of $1 per bottle to complete this order.

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