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Vidget Inc., manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year.

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Vidget Inc., manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: $44 Sale price per unit Variable costs per unit: Manufacturing Marketing and administrative $24 $5 otal fixed costs: Manufacturing Marketing and administrative $75,000 $25,000 Fa special sales order is accepted for 8,200 widgets at a price of $36 per unit, and fixed costs increase by $12,000, how would operating income be affected? A. Decrease by $45,400 B. Increase by $45,400 c. Increase by $86,400 D. Increase by $69,400 HUU UW H IS I UTI RUUULLUT Sale price per unit $44 Variable costs per unit: Manufacturing Marketing and administrative $24 $5 Total fixed costs: Manufacturing $75,000 Marketing and administrative $25,000 If a special sales order is accepted for 8.200 widgets at a price of $36 per unit, and fixed costs increase by $12,000, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) O A. Decrease by $45,400 O B. Increase by $45,400 OC. Increase by $86,400 OD. Increase by $69,400

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