Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is currently produces and sells 75,000 seats per year. The following information relates to current production of seats Sale price per unit $450 Variable costs per unit: Manufacturing $240 $60 Marketing and administrative Total fixed costs Manufacturing $790,000 $200,000 Marketing and administrative If a special sales order is accepted for 3,400 seats at a price of $350 per unit, and fixed costs increase by $10,000, how would operating income be affected? (NOTE: Assume O A. Increase by $170,000 O B. Increase by $160,000 C. Decrease by $160,000 D. Increase by $364,000