Lowwater Sailmakers Manufactures Sails for Sailboats -
If a Special Sales Order Is Accepted for 2,000

Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000 sails per year, and is currently producing and selling 20,000 sails per year. The following information relates to current production:
$\begin{array}{|l|r|}\hline \text { Sale price per unit } & \$ 150 \\\hline \text { Variable costs per unit: } & \\ \hline \text { Manufacturing } & 55 \\\hline \text { Marketing and administrative } & 25 \\\hline \text { Total fixed costs: } & \\\hline \text { Manufacturing } & \$ 640,000 \\\hline \text { Marketing and administrative } &\$ 280,000 \\\hline\end{array}$


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If a special sales order is accepted for 2,000 sails at a price of $95 per unit, and if the order requires both variable manufacturing and variable marketing and administrative costs, and if incremental fixed costs of $10,000 are required, what will be the impact on operating income?

A) Operating income decreases $34,000.
B) Operating income decreases $44,000.
C) Operating income increases $20,000.
D) Operating income increases $25,000.