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Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce 15,000...

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Accounting

Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce 15,000 sails per year, but is currently producing and selling 10,000 sails per year. The following information relates to current production:

Sales price per unit 250
Variable Costs per unit:
Manufacturing 153
Marketing and administrative 42
Fixed Cost per unit
Manufacturing 75
Marketing and Administrative 20

If a special sales order is accepted for 4736 sails at a price of $228 per unit, and fixed costs remain unchanged, how would operating income be affected? (assume regular sales are not affected by the special order) If accepting the special order would reduce income, use a negative number for your answer.

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