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Can an expert please help me solve the question above? Please show work. Maritime Sail Makers manufactures sails for sailboats. The company has the capacity
Can an expert please help me solve the question above? Please show work.
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 25,000 sails per year. The following information relates to current production: $185 Sales price per unit Variable costs per unit: Manufacturing Selling and administrative $50 S20 Total fixed costs: Manufacturing Selling and $675,000 300,000 ministrative r 5,500 sails at a sales price of S150 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? If a special pricing order is accepted O A. Operating income decreases O B. Operating income increases by S440,000. O C. Operating income increases by S550,000 O D. Operating income decreases y S440,000 $550,000Step by Step Solution
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