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Bismarck, Inc. has the capacity to make 36,000 sails per year, but it is currently producing and selling 25,000 sails per year. The following information
Bismarck, Inc. has the capacity to make 36,000 sails per year, but it is currently producing and selling 25,000 sails per year. The following information relates to current production Sales price per unit $175 Variable costs per unit: Manufacturing $60 Selling and administrative 510 Total fixed costs: Manufacturing 5675,000 Selling and administrative $250,000 The firm has received a request for 5.500 units at a special price of $170 per unit. Fixed costs would remain unchanged, and there are no selling and administrative costs for this order. What is the change in operating income from accepting this special order? O A Operating income decreases by $605,000 OB. Operating income decreases by 5550.000 Operating income increases by 5550,000 D.Operating income increases by 5605,000
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