17. High Tide Sailmakers manufactures sails for sailboats. They are currently operating below maximum capacity...
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17. High Tide Sailmakers manufactures sails for sailboats. They are currently operating below maximum capacity and have the ability to produce at least 5,000 more sails each year. The regular selling price per sail is $150 each and variable cost per sail is $80. If a special order is accepted for 5,000 sails at a price of $125 per unit, and fixed costs remain unchanged, how would the special order effect operating income? A) decrease by $5,000 B) increase by $350,000 C) decrease by $225,000 D) increase by $225,000
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