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LowwaterSailmakers manufactures sails for sailboats. The company has the capacity to produce 20.000 sails per year, and is currently producing and selling 15,000 sails

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LowwaterSailmakers manufactures sails for sailboats. The company has the capacity to produce 20.000 sails per year, and is currently producing and selling 15,000 sails per year. The following information relates to current production: Sale price per unit Shs. 200 1. Variable costs per unit: Manufacturing Shs. 60 Marketing and administrative Shs. 35 Total fixed costs: Manufacturing Shs. 550,000 Shs. 300,000 Marketing and administrative If a special sales order is accepted for 2,500 sails at a price of Shs. 80 per unit, fixed costs remain unchanged, and there are no additional variable marketing and administrative costs for this order, what is the change in operating income? Select one: O A. Operating income decreases Shs. 37,500. B. Operating income decreases Shs. 50,000. C. Operating income increases Shs. 37,500. D. Operating income increases Shs. 200,000.

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