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Question Help Voyage Sail Makers manufactures sails for sailboats. The company has the capacity to produce 36,000 sails per year and is currently producing and
Question Help Voyage Sail Makers manufactures sails for sailboats. The company has the capacity to produce 36,000 sails per year and is currently producing and selling 25,000 sails per year. The following information relates to current production: Sales price per unit $175 Variable costs per unit: Manufacturing $50 Selling and administrative $10 Total fixed costs: Manufacturing $700,000 Selling and administrative $300,000 If a special pricing order is accepted for 5,500 sails at a sales price of $160 per unit, and fixed costs remain unchanged. what is the change in operatina income? (Assume the special pricina order will require variable O A. Operating income increases by $880,000. OB. Operating income decreases by $550,000. OC. Operating income decreases by $880,000 OD. Operating income increases by $550,000. Click to select your answer Question Help year and is currently producing and selling 25,000 sails per year. The following information relates to current production: Sales price per unit $175 Variable costs per unit: Manufacturing $50 Selling and administrative $10 Total fixed costs: Manufacturing $700,000 Selling and administrative $300,000 If a special pricing order is accepted for 5,500 sails at a sales price of $160 per unit, and fixed costs remain unchanged, what is the change in operating income? (Assume the special pricing order will require variable manufacturing costs and variable selling and administrative costs.) O A. Operating income increases by $880,000 OB. Operating income decreases by $550,000 OC. Operating income decreases by $880,000. OD. Operating income increases by $550,000
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