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Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per
Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to current production: (Click the icon to view the data.) If a special sales order is accepted for 2,700 seats at a price of $350 per unit, fixed costs increase by $6,600, and variable marketing and administrative costs for that order are $1 per unit, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) O A. Increase by $287,700 O B. Increase by $290,400 O C. Increase by $294,300 OD. Decrease by $287,700 0 Data Table - X Sales price per unit $430 Variable costs per unit: Manufacturing Marketing and administrative $240 $80 Total fixed costs: Manufacturing Marketing and administrative $760,000 $220,000 Print Print Done
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