Lighthouse Sail Makers manufactures sails for sailboats. The company has the capacity to produce 35,000 sails per year and is currently producing and selling 30,000 sails per year. The following information relates to current production: Sales price per unit exist175 Variable costs per unit: Manufacturing exist60 Selling and administrative exist20 Total fixed costs: Manufacturing exist675.000 Selling and administrative exist300,000 The fixed manufacturing costs increase by exist102,000 for every 500 units produced beyond the maximum capacity of the plant. If a special pricing order is accepted for 5, 500 sails at a sales price of exist165 per unit, and if the order requires no variable or fixed selling and administrative costs, what is the effect on operating income? A. Operating income decreases by exist475, 500. B. Operating income decreases by exist577, 500. C. Operating income increases by exist475, 500. D. Operating income increases by S577.500