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Centric Sail Makers manufactures sails for sailboats. The company has the capacity to produce 37 comma 00037,000sails per year and is currently producing and selling 30 comma 00030,000sails per year. The following information relates to currentproduction:

Sales price per unit	$ 185$185
Variable costs perunit:
Manufacturing	$ 60$60
Selling and administrative	$ 20$20
Total fixedcosts:
Manufacturing	$ 700 comma 000$700,000
Selling and administrative	$ 300 comma 000$300,00

If a special pricing order is accepted for 5 comma 6005,600sails at a sales price of $ 150$150perunit, and fixed costs remainunchanged, what is the change in operatingincome? (Assume the special pricing order will require variable manufacturing costs and variable selling and administrativecosts.)

Operating income decreases by $ 840 comma 000$840,000.

B.

Operating income increases by $ 392 comma 000$392,000.

C.

Operating income decreases by $ 392 comma 000$392,000.

D.

Operating income increases by $ 840 comma 000$840,000.