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1) Saudia Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs are $1.00 per unit

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1) Saudia Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs are $1.00 per unit and fixed costs are $0,50 per unit. Current monthly sales are 164,500 units. Bahrain Company has contacted Saudia Company about purchasing 20,000 units at $2.00 each. Current sales would not be affected by the special order and no additional fixed costs would be incurred on the special order. Variable costs would increase 50.10 per unit with the special order. It the order is accepted, what is Saudia Company's increase in operating income? O $8,000

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