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Istanbul Company manufactures bikes. The company has the capacity to produce 37,000 bikes per year and is currently producing and selling 25,000 bikes per year.
Istanbul Company manufactures bikes. The company has the capacity to produce 37,000 bikes per year and is currently producing and selling 25,000 bikes per year. The following information relates to current production: If a special pricing order is accepted for 5,600 bikes at a sales price of $160 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? A) remain the same B) increases by $560,000. C) decreases by $560,000. D) decreases by $448,000 E) increases by $448,000
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