Voyage Sail Makers manufactures sails for sailboats. The company has the capacity to produce

36 comma 00036,000

sails per year and is currently producing and selling

25 comma 00025,000

sails per year. The following information relates to current production:

Sales price per unit	$ 175$175
Variable costs per unit:
Manufacturing	$ 50$50
Selling and administrative	$ 10$10
Total fixed costs:
Manufacturing	$ 700 comma 000$700,000
Selling and administrative	$ 300 comma 000$300,000

If a special pricing order is accepted for

5 comma 6005,600

sails at a sales price of

$ 170$170

per unit, and fixed costs remain unchanged, what is the change in operating income? (Assume the special pricing order will require variable manufacturing costs and variable selling and administrative costs.)

A.Operating income increases by

$ 616 comma 000$616,000.

B.Operating income decreases by

$ 616 comma 000$616,000.

C.Operating income increases by

$ 952 comma 000$952,000.

D.Operating income decreases by

$ 952 comma 000$952,000.