Maritime Sail Makers manufactures sails for sailboats. The company has the capacity to produce 36,000...
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Maritime Sail Makers manufactures sails for sailboats. The company has the capacity to produce 36,000 sails per year and is currently producing and selling 30,000 sails per year. The following information relates to current production: $175 Sales price per unit Variable costs per unit: Manufacturing Selling and administrative Total fixed costs: Manufacturing Selling and administrative $60 $10 $675,000 $250,000 If a special pricing order is accepted for 5,600 sails at a sales price of $150 per unit, fixed costs remain unchanged, and there are no variable selling and administrative costs for this order, what is the change in operating income? O A. Operating income decreases by $448,000. OB. Operating income decreases by $504,000. OC. Operating income increases by $448,000. OD. Operating income increases by $504,000
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