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The degree of operating leverage for Madrigal Company is 3. The actual operating income is $15,000. If the company expects a 15% increase in sales, operating income should increase by $2,250. True False 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: $185 Sales price per unit Variable costs per unit: Manufacturing Selling and administrative Total fixed costs: Manufacturing Selling and administrative $50 $20 $700,000 $300,000 If a special pricing order is accepted for 5,500 sails at a sales price of $170 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.) A. Operating income increases by $550,000. B. Operating income increases by $935,000. C. Operating income decreases by $935,000. D. Operating income decreases by $550,000