Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce 15,000 sails per year, but is currently producing and selling 10,000 sails per year.

The following information relates to current production: If a special sales order is accepted for 2,500 sails at a price of $205 per unit, fixed costs increase by $14,000, and variable marketing and administrative costs for that order are $25 per unit, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

A. Increase by $23,500

B. Decrease by $23,500

C. Increase by $37,500

D. Increase by $86,000

(When I solved this on my own I came to C. 37500 increase, but my teachers solution said that the answer is A. 23,500 increase. Is this a mistake on her part or mine, If it is my mistake can you please explain why?)