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

Variable manufacturing costs per unit	$106
Total fixed manufacturing costs	$565,000
Variable marketing and administrative costs per unit	$34
Total fixed marketing and administrative costs	$250,000

The regular selling price per chaise lounge is $290. The company is analyzing the opportunity to accept a special sales order for 1200 chaise lounge at a price of $210 per unit. Fixed costs would remain unchanged. The company has the capacity to produce 55,000 chaise lounges per year, but is currently producing and selling 9000 chaise lounges per year. The 1200 units would not require any variable marketing and administrative expenses. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected?

Selected Answer:	Increase by $84,000
Answers:	Decrease by $124,800
	Decrease by $84,000
	Increase by $84,000
	Increase by $124,800