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 unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

Question 8 options:

	Decrease by $10,000
	Increase by $19,000
	Increase by $17,000
	The correct answer is NONE of the other options.