Question $4$

Company $x$ produces widgets. The following information relates to the its current production:

Sale price per unit:

Variable costs per unit:

Manufacturing

Marketing and administrative

Total fixed costs:

Manufacturing

Marketing and administrative

$$400$

$$240$

$$70$

$$760,000$

$$230,000$

A special sales order request was received for $7400$ widgets at a price of $$350$ per widget. Assuming fixed costs remain unchanged, how would operating income be affected if the special order is accepted? $($NOTE: Assume the company has capacity and that regular sales are not affected by the special order.$)$

A$.$ Increase by $$2,590,000$

B$.$ Increase by $$296,000$

C$.$ Decrease by $$296,000$

D$.$ Increase by $$4,590,000$