Maritime Sail Makers manufactures sails for sailboats. The company has the capacity to produce 37,000 sails per year and is currently producing and selling 25,000 sails per year. The following information relates to current production: $180 Sales price per unit Variable costs per unit: Manufacturing Selling and administrative Total fixed costs: Manufacturing Selling and administrative $50 $10 $675,000 $300,000 If a special pricing order is accepted for 5,500 sails at a sales price of $150 per unit, fixed costs remain unchanged, and there are no variable selling and administrative costs for this order, what is the change in operating income? A. Operating income decreases by $495,000. B. Operating income increases by $550,000. O C. Operating income decreases by $550,000. A company is evaluating three possible investments. Each uses the straight-line method of depreciation. Following information is provided by the company: Project A Project B Project C Investment $212,000 $50,000 $212,000 Residual value 0 22,000 34,000 Net cash inflows: Year 1 62,000 32,000 96,000 Year 2 62,000 23,000 66,000 Year 3 62,000 19,000 76,000 Year 4 62,000 16,000 36,000 Year 5 62,000 0 0 What is the accounting rate of return for Project B? (Round you answer to two decimal places.) O A. 27.32% OB. 41.08% O C. 43.06% OD. 44.05%