Onion Company produces and sells 50,000 bags of onion rings each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Bag	Total Costs
Variable production costs	$13	$650,000
Fixed production costs	$8	$400,000
Variable selling costs	$5	$250,000
Fixed selling and administrative costs	$3	$150,000
Total costs	$29	$1,450,000

Onion marks up its prices 35% over full costs. It has surplus capacity to produce 20,000 more bags. A Norwegian supermarket company has offered to purchase 12,000 bags of the product at a special price of $33 per bag. Onion will incur additional shipping and selling costs of $1.50 per bag to complete this order.

Required: (a) What will be the effect on Onion's operating income if it accepts this order? (b) Analyze the impact on the company's overall profitability.