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Chip Jones ahoy manufactures the doth for sails. The company has the capacty to produce 36,000 sails per year and is currently producing and selling

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Chip Jones ahoy manufactures the doth for sails. The company has the capacty 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: Assume that a special pricing ordet is accepted for 5600 sails at a sales price of $150 per urit. This special order requires both variable manufacturing and varable selling and administrative costs, as well as incremental fixed costs of $400,000. What will be the impact on operating income? Opcrating income decreases by $380,800

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