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3. Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is currently producing and selling
3. Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is currently producing and selling 75,000 seats per year. The following information relates to current production: Sale price per unit $400 Variable costs per unit: Manufacturing Marketing and administrative $220 $50 Fixed costs per unit Manufacturing Marketing and administrative sid $3/ If a special sales order is accepted for 7,000 seats at a price of $350 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) A Increase by S560,000 B Decrease by $560.000 Increase by $245.000 D Increase by $840.000 None of the above 19
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