Fishing Run Corporation received a special order request for 20,000 new fishing poles at a...
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Fishing Run Corporation received a special order request for 20,000 new fishing poles at a sales price of $30 each. This is a $10 reduction in the normal sales price. The variable costs per fishing pole are $20. The total fixed costs of $110,000 will not change as a result of the special order. The Corporation has enough excess capacity to fill the order without affecting current sales. What will be the impact on operating income if the special order is accepted?
A. Decrease in operating income of $90,000
B. Decrease in operating income of $200,000
C. Increase in operating income of $90,000
D. Increase in operating income of $200,000
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