Centric Sail Makers Manufacture Sails for Sailboats Fixed Manufacturing Costs Increase by $100,000 for Every 500 Units

Centric Sail Makers manufacture sails for sailboats.The company has the capacity to produce 35,000 sails per year and is currently producing and selling 30,000 sails per year.The following information relates to current production:
$$\begin{array} { | l | l | } \hline \text { Sale price per unit } & \$ 185 \\\hline \text { Variable costs per unit: } & \\\hline \text { Manufacturing } & \$ 60 \\\hline \text { Marketing and administrative } & \$ 20 \\\hline \text { Total fixed costs: } & \\\hline \text { Manufacturing } & \$ 675,000 \\\hline \text { Marketing and administrative } & \$ 300,000 \\\hline\end{array}$$
Fixed manufacturing costs increase by $100,000 for every 500 units produced beyond the maximum capacity of the plant.If a special sales order is accepted for 5500 sails at a price of $150 per unit and if the order requires no variable and fixed marketing and administrative costs,what will be the effect on operating profit?

A) Operating profit decreases by $495,000
B) Operating profit increases by $395,000
C) Operating profit decreases by $395,000
D) Operating profit increases by $495,000