Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 60,000 parts is $160,000, which includes fixed costs of $50,000 and variable costs of $110,000. The company can buy the part from an outside supplier for $3.00 per unit, and avoid 30% of the fixed costs. If Harvey Automobiles makes the part, how much will its operating income be? O a. $145,000 greater than if the company bought the part O b. $145,000 less than if the company bought the part 4 O c. $55,000 greater than if the company bought the part O d. $55,000 less than if the company bought the part Sky High Seats 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 the current production of the product: Sale price per unit Variable costs per unit: Manufacturing $240 $400 Marketing and administrative $70. Total fixed costs: Manufacturing $760,000 Marketing and administrative $230,000 If a special sales order is accepted for 7400 seats at a price of $350 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) O a. Increase by $4,000,000 O b. Increase by $2,590,000 O c. Decrease by $296,000 O d. Increase by $296,000