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The following information relates to current production of outdoor chaise lounges at BackyardPosh: Variable manufacturing costs per unit $ 105 $105 Total fixed manufacturing costs

The following information relates to current production of outdoor chaise lounges at BackyardPosh:

Variable manufacturing costs per unit

$ 105

$105

Total fixed manufacturing costs

$525,000

Variable marketing and administrative costs per unit

$ 30

$30

Total fixed marketing and administrative costs

$250,000

The regular selling price per chaise lounge is $ 350

$350. The company is analyzing the opportunity to accept a special sales order for 300

300 chaise lounges at a price of $ 210

$210 per unit. Variable marketing and administrative costs would be $ 15

$15 per unit lower than on regular sales. Fixed costs would increase by $ 13 comma 000

$13,000. The company has the capacity to produce 85 comma 000

85,000 chaise lounges peryear, but is currently producing and selling 10 comma 000

10,000 chaise lounges per year. Regular sales will not be affected by the special order. If the company were to accept this specialorder, how would operating income beaffected?

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