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Use the information below to answer the following question(s) :
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:
-If Clear Sky Sailmakers accepts a special order 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.)
Trade
The exchange of goods, services, or both between two or more parties.
Factors of Production
The assets employed to produce goods and services, encompassing land, labor, capital, and entrepreneurship.
Command Economy
A type of economic system where production, investment, prices, and incomes are determined centrally by a government.
Central Authority
An organization or governing body that holds the primary power and control over decision-making and regulation within a certain area or scope.
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