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Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is currently produces and sells 75,000 seats per year. The following information relates to current production of seats: Sale price per unit $430 Variable costs per unit: Manufacturing Marketing and administrative $220 $50 Total fixed costs: Manufacturing Marketing and administrative $800,000 $240,000 If a special sales order is accepted for 3,400 seats at a price of $330 per unit, and fixed costs increase by $15,000, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) O A. Increase by $359,000 OB. Increase by $204,000 C. Increase by $189,000 OD. Decrease by $189,000 Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $480,000 355,000 125,000 79,000 $46,000 Luxury $350,000 $235,000 115,000 39,500 $75,500 Sporty $130,000 120,000 10,000 39,500 $(29,500) Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the line is rented for $32,000 per year, how will operating income be affected? O A. Decrease $22,000 O B. Increase $68,000 OC. Increase $22,000 OD. Increase $151,000 Lie Around Furniture manufactures two products: Futons and Recliners. The following data are available: Sales price Variable costs Futons $540 $380 Recliners $710 $375 The company can manufacture either 3 futons per machine hour or 1 recliner(s) per machine hour. The company's production capacity is 11,500 machine hours per month. What is the contribution margin ratio for futons? O A. 42.11% B. 29.63% O C. 17.04% OD. 84.38%