Please dont just write the answee. could you also type how you got it. Thanks!
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100000 seats per year but is currently producing and selling 75000
seats per year. The following information relates to current production:
Sale price per unit
$400
Variable costs per unit:
Manufacturing
$220
Marketing and administrative
$50
Total fixed costs:
Manufacturing
$750000
Marketing and administrative
$200000
If a special sales order is accepted for 7000 seats at a price of $350 per unit and fixed costs remain unchanged how would operating income be affected?
(NOTE: Assume regular sales are not affected by the special order.)