High Fly Parachute Company manufactures parachutes. The company has the capacity to produce 15,000 units per year, but is currently producing and selling 10,000 units per year. The following information relates to current production:

Sale price per unit

$1,050

Variable costs per unit:

Manufacturing

$615

Marketing and administrative $150

Total fixed costs:

Manufacturing

$750,000

Marketing and administrative $200.000

If the company accepts a special order for 200 sails at a price of $860 per unit, and fixed costs remain unchansed. how would operating income be affected? (NOTE:

Assume regular sales are not affected by the special order.)

Increase by $19,000

Decrease by $10,000

The correct answer is NONE of the other options.

( Increase by $17.000