Stangle Company manufactures ties. When 28,000 Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling Fixed selling ties are produced, the costs per unit are: $0.60 $3.00 $1.20 $1.60 $0.80 $1.13 The ties normally sell for $22 each. The company has received a special order for 2,000 ties at $8.00 per tie. The company will incur an additional variable selling cost of $1.50 per unit with the special order. The company has excess capacity.

Required: Compute the amount by which the operating income would change if the order were accepted. Please show your work!