Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is currently producing and selling 75,000 seats per year. The following information relates to current production:

Sale price per unit	$400
Variable costs per unit:
Manufacturing	$220
Marketing and administrative	$50
Total fixed costs:
Manufacturing	$750,000
Marketing and administrative	$200,000

If a special sales order is accepted for 2,500 seats at a price of $320 per unit, fixed costs increase by $5,000 and variable marketing and administrative costs for that order are $25 per unit. Assuming this order will not affect Sky High's regular sales, how would operating income be affected?

Group of answer choices

Increase by $187,500.

Decrease by $182,500.

Increase by $182,500.

Decrease by $187,500.