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he following information relates to current production of outdoor wicker sofas at Backyard Posh: Variable manufacturing costs per unit Total fixed manufacturing costs Variable marketing and administrative costs per unit Total fixed marketing and administrative costs The regular selling price per wicker sofa is . The company is analyzing the opportunity to accept a special sales order for wicker sofas at a price of per unit. Fixed costs would remain unchanged. The company has the capacity to produce wicker sofas per year, but is currently producing and selling wicker sofas per year. Regular sales will not be affected by the special order. What is the impact on operating income if the company accepts the special order?

The following information relates to current production of outdoor wicker sofas at Backyard Posh: Variable manufacturing costs per unit Total fixed manufacturing costs Variable marketing and administrative costs per unit Total fixed marketing and administrative costs $104 $565,000 $30 $300,000 The regular selling price per wicker sofa is $340. The company is analyzing the opportunity to accept a special sales order for 1,100 wicker sofas at a price of $215 per unit. Fixed costs would remain unchanged. The company has the capacity to produce 15,000 wicker sofas per year, but is currently producing and selling 12,000 wicker sofas per year. Regular sales will not be affected by the special order. What is the impact on operating income if the company accepts the special order? O A. Decrease by $236,500 OB. Increase by $236,500 O C. Increase by $89,100 OD. Decrease by $89,100

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