The budget for the Author University Printing company for 2015 is as follows: Sales $ 1,128,600 Direct Materials $ 295,000 Direct Labour $ 340,000 Overhead $ 391,000 $ 1,026,000 Net Income $ 102,600 The company uses cost-plus pricing. Direct material and direct labour costs are computed and the overhead is added at a rate of 115% of direct labour costs and 10% of the total cost is added to obtain the selling price. Vinod Gupta, the sales manager has placed a $23,000 bid on a particular order with a cost of $5,300 direct material and $ 6,200 direct labour. The customer informs him that he can have the business for $ 16,000, take it or leave it. If Vinod accepts the order, total sales for 2015 will be $1,144,600. Vinod refuses the order saying that, I will sell on cost plus basis. It is a bad policy to accept any order below cost. I will lose $2,630 on the job. The companys annual fixed overheads are $ 170,000. What would the operating income have been with the order? Without the order? Show your calculations.