Pineapple Company produces and sells 60,000 cans of pineapple slices each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Can	Total Costs
Variable production costs	$16	$960,000
Fixed production costs	$7	$420,000
Variable selling costs	$5	$300,000
Fixed selling and administrative costs	$3	$180,000
Total costs	$31	$1,860,000

Pineapple marks up its prices 50% over full costs. It has surplus capacity to produce 20,000 more cans. A Korean supermarket company has offered to purchase 15,000 cans of the product at a special price of $35 per can. Pineapple will incur additional shipping and selling costs of $1.50 per can to complete this order.

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