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.