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

Clear Sky Sailmakers manufactures sails for sailboats.The company has the capacity to produce 15,000 sails per year,but is currently producing and selling 10,000 sails per year.The following information relates to current production: $$\begin{array} { | l | c | } \hline \text { Sale price per urit } & \$ 250 \\\hline & \\\hline \text { Variable costs per unit: } & \\\hline \text { Manufacturing } & \$ 165 \\\hline \text { Marketing and adrministrative } & \$ 50 \\\hline & \\\hline \text { Total Eixed costs: } & \\\hline \text { Manufacturing } & \$ 750,000 \\ \hline \text { Marketing and adrinistrative } & \$ 200,000 \\\hline\end{array}$$
- If a special sales order is accepted for 2,000 sails at a price of $220 per unit,and fixed costs increase by $7,000,how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

A) Decrease by $3,000
B) Increase by $103,000
C) Increase by $3,000
D) Increase by $10,000