Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 75000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to the current production of the product: (Click the icon to view the data.) If a special sales order is accepted for 7,400 seats at a price of $350 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) A. Increase by $296,000 B. Increase by $2,960,000 - Data Table OC. Decrease by $370,000 OD. Increase by $2,590,000 Sale price per unit $400 Variable costs per unit: Manufacturing Marketing and administrative $240 $70 Total fixed costs: Manufacturing Marketing and administrative $760,000 $230,000 All About Animals has two product lines: Cat food and Dog food. Contribution margin income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total $385,000 $192,000 $193,000 $102,000 $91,000 Cat Food $300,000 $170,000 $130,000 $50.000 $80,000 Dog Food $85,000 $22.000 $63,000 $52,000 $11,000 Assuming the Dog food line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Dog food line is used to double the production of Cat food, how will operating income be affected? A. Increase $260,000 B. Decrease $67,000 C. Increase $130,000 D. Increase $67,000