Question 9 (2 points) 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: Sale price per unit $1,050 Variable costs per unit: Manufacturing $615 Marketing and administrative $150 Total fixed costs: Manufacturing $750,000 Marketing and administrative $200,000 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 O Decrease by $15,000 Increase by $17,500 Previous Page Next Page Page 9 of 25