Peach Company produces and sells 25,000 jars of peach preserves each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Jar	Total Costs
Variable production costs	$18	$450,000
Fixed production costs	$10	$250,000
Variable selling costs	$7	$175,000
Fixed selling and administrative costs	$5	$125,000
Total costs	$40	$1,000,000

Peach marks up its prices 30% over full costs. It has surplus capacity to produce 10,000 more jars. An Australian supermarket company has offered to purchase 8,000 jars of the product at a special price of $42 per jar. Peach will incur additional shipping and selling costs of $2 per jar to complete this order.

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