Question: answer asap please The following information relates to current production of outdoor wicker sofas at Backyard Posh: The regular selling price per wicker sofa is
The following information relates to current production of outdoor wicker sofas at Backyard Posh: The regular selling price per wicker sofa is $300. The company is analyzing the opportunity to accept a special sales order for 500 wicker sofas at a price of $220 per unit. Fixed costs would increase by $22,000. The company has the capacity to produce 85,000 wicker sofas per year, but is currently producing and selling 8,000 wicker sofas per year. Regular sales will not be affected by the special order. If the company were to accept this special order, how would operating income be affected? A. Increase by $41,500 B. Decrease by $19,500 C. Decrease by $41,500 D. Increase by $19,500
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