Dancer Equipment Company has several divisions that are investment centers. Data for the Sleigh Division and the Trailer Division are shown here: Sleigh Division Trailer Division Operating income $70,000 $40,000 Total assets at Jan. 1 $680,000 $215,000 Total assets at Dec.31 $780,000 $210,000 Which of the following statements would be the most meaningful interpretation of this data? o The Sleigh Division shows a more efficient use of assets than the Trailer Division because it has a higher operating income. O The Sleigh Division is financially more successful than the Trailer Division because it shows an increase in assets. O The Sleigh Division uses its assets less efficiently than the Trailer Division does because it has a lower return on investment. o The Sleigh Division's performance is better than that of the Trailer Division because it has higher assets. QUESTION 18 Vixen Sleigh Makers manufactures rails for sleighs. The company has the capacity to produce 36,000 rails per year and is currently producing and selling 25,000 rails per year. The following information relates to current production: Sales price per unit $180 Variable costs per unit: Manufacturing $50 Selling and administrative $10 Total fixed costs: Manufacturing $675,000 Selling and administrative $300,000 If a special pricing order is accepted for 5600 rails at a sales price of $150 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? o Operating income decreases by $504,000. o Operating income increases by $504,000. o Operating income decreases by $560,000 Operating income increases by $560,000