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Business, 09.04.2020 17:52 monk68

Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to the current production of the product:

Sale price per unit $400
Variable costs per unit:
Manufacturing $220
Marketing and administrative $50
Total fixed costs:
Manufacturing $750,000
Marketing and administrative $200,000

If a special sales order is accepted for 2,500 seats at a price of $320 per unit, fixed costs increase by $5,000, and variable marketing and administrative costs for that order are $25 per unit, how would operating income be? affected?

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