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ky gh ats mauf tes The mpany has the capacity to produce 100.000 s pr y, tn is crontty poducing and ing 75000 te
ky gh ats mauf tes The mpany has the capacity to produce 100.000 s pr y, tn is crontty poducing and ing 75000 te per yr The Fellowing intomation ats to curret peodactior Sale ice per unit $400 Mariable costs per uriit $220 Manufacturing Marketing and administrative Total fixed costs Manufacturing Marketing and administrative $750,000 $200,000 If a special sales order is accepted for 4,000 seats at a price of $325 per unit, fixed costs remain unchanged, and no variable marketing and administrative costs will be incurred for this order, how would operating income be affected? (NOTE: Assurme regular sales are not affected by the special order.) O Increase by $220,000 O Decrease by $420,000 O Increase by $420,000 O Increase by $2,180,000
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