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Laker manufactures sails for saiboats. The company has the capacity to produce 37,000 sais per year and is currently producing and seling 30,000 sais per

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Laker manufactures sails for saiboats. The company has the capacity to produce 37,000 sais per year and is currently producing and seling 30,000 sais per year. The following inforimabon relates to current production Assume that a special pricing oraer is accepted for 5500 sails at a sales price or $150 per unit. This special order requires variable selling and administrative costs, as well as incremental foxed costs of 5401,000 . What will be the impact on operating income? Select one: A. Operating income decreases by $385,000 B. Operating income increases by $385,000 C. Operating income decreases by $16,000. D. Operating income increases by $16,000

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