part b

High Fly Parachute Company manufactures parachutes. The company has the capacity to produce 15,000 units per year, but is currently producing and selling 10,000 units per year. The following information relates to current production: If the company accepts a special order for 200 sails at a price of $860 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) Increase by $19,000 Increase by $17,000 The correct answer is NONE of the other options. Decrease by $10,000 If the company accepts a special order for 500 sails at a price of $820 per unit, and fixed costs increase by $15,000, and the company would not have to pay a normal sales commission of $5 /unit, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) Increase by $15,000 Decrease by $35,000 Decrease by $15,000 Increase by $17,500