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Low water Sallmakers manufactures salls for sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000
Low water Sallmakers manufactures salls for sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 salls per yearThe following Information relates to current production: Sales price per unit $150 Variable cost per unit: Manufacturing $55 Marketing and administrative $25 Total fixed costs: Manufacturing: $640,000 Marketing and administrative: $280,000 If a special sales order is accepted for 6,000 sails at a price of $120 per unit, and fixed costs remain unchanged, what is the change in operating income? Operating income decreases $5,000. Operating Income increases $240,000. Operating income decreases $125,000. Operating income increases $225,000
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