Question
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce? 100,000 seats per? year, but currently produces and sells? 75,000 seats
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce? 100,000 seats per? year, but currently produces and sells? 75,000 seats per year. The following information relates to the current production of the? product: Sale price per unit $ 450 Variable costs per? unit: Manufacturing $ 260 Marketing and administrative $ 90 Total fixed? costs: Manufacturing $ 800 comma 000 Marketing and administrative $ 250 comma 000 If a special sales order is accepted for 7 comma 400 seats at a price of $ 380 per? unit, and fixed costs remain? unchanged, how would operating income be? affected? (NOTE: Assume regular sales are not affected by the special? order.)
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