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Buzz Lightyear Inc. manufactures space suits. The company has the capacity to produce 36,000 suits...

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Accounting

Buzz Lightyear Inc. manufactures space suits. The company has the capacity to produce 36,000 suits per year and is currently producing and selling 30,000 per year. The following information relates to current production: Sales price per unit $180 Variable costs per unit: Manufacturing $60 Selling and administrative $20 Total fixed costs: $675,000 Manufacturing Selling and administrative $300,000 If a special pricing order is accepted for 5,000 suits at a sales price of $150 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.) Operating income increases by $350,000. Operating income increases by $440,000. Operating income decreases by $400,000. O Operating income decreases by $300,000

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