Question: Data Table Sale price per unit $400 Variable costs per unit: Manufacturing Marketing and administrative $240 $70 Total fixed costs: Manufacturing Marketing and administrative $760,000


Data Table Sale price per unit $400 Variable costs per unit: Manufacturing Marketing and administrative $240 $70 Total fixed costs: Manufacturing Marketing and administrative $760,000 $230,000 Print Done Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 75000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to the current production of the product: (Click the icon to view the data.) If a special sales order is accepted for 7,400 seats at a price of $350 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) A. Increase by $2,590,000 B. Increase by $2,960,000 C. Increase by $296,000 D. Decrease by $370,000
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