3) Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is currently produces and sells 75,000 seats per year. The following information relates to current production of seats:Sale price per unit$430Variable costs per unit: Manufacturing$250 Marketing and administrative$50Total fixed costs: Manufacturing$770,000 Marketing and administrative$240,000If a special sales order is accepted for 3000 seats at a price of $330 per unit, and fixed costs increase by $13,000, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)
RECOMMENDED!!ACCOUNT 1254698-Sky High Seats manufactures seats for airplanes
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