Comfort Cloud 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 current production: Sales price per unit $ 420 Variable costs per unit: Manufacturing $ 270 Marketing and administrative $ 100 Total fixed costs: Manufacturing $ 780 comma 000 Marketing and administrative $ 230 comma 000 If a special sales order is accepted for 3 comma 000 seats at a price of $ 310 per unit, fixed costs increase by $ 6 comma 900 , and variable marketing and administrative costs for that order are $ 2 per unit, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.) A. Increase by $ 114 comma 000
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