Melon Company produces and sells 25,000 packs of melon slices each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Pack	Total Costs
Variable production costs	$13	$325,000
Fixed production costs	$8	$200,000
Variable selling costs	$6	$150,000
Fixed selling and administrative costs	$3	$75,000
Total costs	$30	$750,000

Melon marks up its prices 40% over full costs. It has surplus capacity to produce 15,000 more packs. A French supermarket company has offered to purchase 10,000 packs of the product at a special price of $34 per pack. Melon will incur additional shipping and selling costs of $1.50 per pack to complete this order.

Required: (a) What will be the effect on Melon's operating income if it accepts this order? (b) Calculate the contribution margin for the additional order.