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Voyage Sail Makers manufactures sails for sailboats. The company has the capacity to produce 36,000 sails per year and is currently producing and selling 30,000
Voyage Sail Makers manufactures sails for sailboats. The company has the capacity to produce 36,000 sails per year and is currently producing and selling 30,000 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 $60 $20 $700,000 $250,000 If a special pricing order is accepted for 5,700 sails at a sales price of $160 per unit, and fixed costs remain unchanged. what is the change in operating income? (Assume the special pricing order will O A. Operating income decreases by $456,000. B. Operating income increases by $912,000. C. Operating income increases by $456,000. D. Operating income decreases by $912,000
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