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Please solve it quickly within 15 minutes and get two upvotes immediately. Thank you Centric Sail Makers manufacture sails for sailboats. The company has the
Please solve it quickly within 15 minutes and get two upvotes immediately. Thank you
Centric Sail Makers manufacture sails for sailboats. The company has the capacity to produce 30,000 sails per year, and is currently producing and selling 25,000 sails per year. The following information relates to current production: Sale price per unit $175 Variable costs per unit $80 Total fixed costs: $1,000,000 If a special sales order is accepted for 5,500 sailsboats at a price of $151 per unit, and if the order requires purchasing a new machine for $5,500, what will be the effect on operating income? Select one: o Operating income increases $395,000. O Operating income increases $390,500. O Operating income decreases $395,000. o Operating income decreases $385,000. o Operating income increases $385,000Step by Step Solution
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