Plum Company produces and sells 30,000 bottles of plum sauce each year. The following information reflects a breakdown of its costs:

Cost Item	Costs per Bottle	Total Costs
Variable production costs	$14	$420,000
Fixed production costs	$9	$270,000
Variable selling costs	$5	$150,000
Fixed selling and administrative costs	$4	$120,000
Total costs	$32	$960,000

Plum marks up its prices 50% over full costs. It has surplus capacity to produce 10,000 more bottles. A Canadian supermarket company has offered to purchase 8,000 bottles of the product at a special price of $35 per bottle. Plum will incur additional shipping and selling costs of $2 per bottle to complete this order.

Required: (a) What will be the effect on Plum's operating income if it accepts this order? (b) Prepare a detailed analysis of the incremental costs and benefits.