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:

Sales price per unit	$420
Variable costs per unit:
Manufacturing	$220
Marketing and administrative	$90
Total fixed costs:
Manufacturing	$ 800 comma 000$800,000
Marketing and administrative	$ 220 comma 000$220,000

If a special sales order is accepted for

2,800

seats at a price of

$310

per unit, fixed costs increase by

$6,500,

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.)

A.

Decrease by$242,700

B.

Increase by$242,700

C.

Increase by $249,200

D.

Increase by $ 245,500

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: Sales price per unit $420 Variable costs per unit: Manufacturing Marketing and administrative $220 $90 Total fixed costs: Manufacturing Marketing and administrative $800,000 $220,000 If a special sales order is accepted for 2,800 seats at a price of $310 per unit, fixed costs increase by $6,500, 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. Decrease by $242,700 O B. Increase by $242,700 O C. Increase by $249,200 OD. Increase by $245,500