Please do not give solution in image format thanku Shady Inc. manufactures outdoor umbrellas. The company has the capacity to produce 100,000 units per year, but itcurrently produces and sells 75,000 units per year. The following information relates to current production:Sale price per unit$44Variable costs per unit:ManufacturingMarketing and administrativeTotal fixed costs:ManufacturingMarketing and administrative$25$9A. Increase by $5,000B. Increase by $39,000C. Decrease by $5,000D. Increase by $44,600$77,000$25,000If a special sales order is accepted for 4,400 umbrellas at a price of $39 per unit, and fixed costs increase by $17,000, howwould operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

Incremental Analysis :— This analysis shows the comparison between two different alternatives. A comparison is made by deducting Alternative 1 from Alternative 2. Incremental revenue is the difference between revenues of different alternatives. Incremental cost is the difference between the costs of different alternatives.Sales revenue from special order = Special order units × Special order selling price per unit = 4,400 × $39= $171,600Variable cost per unit = Variable manufacturing cost per unit + Variable marketing and administrative per unit= $25 + $9= $34Additional variable costs incurred for special order= Variable cost per unit × Special order units = $34 × 4,400= $149,600Total additional costs incurred for special order= Additional variable costs incurred for special order + Additional fixed cost incurred= $149,600 + $17,000= $166,600Notes #:- Total fixed costs incurred are sunk cost and not incurred for special order. Increase (decrease) in operating income from special order = Sales revenue from special order — Total additional costs incurred for special order = $171,600 — $166,600= $5,000Hence option A is correct.Requirement #:—Hence, operating income is increased by $5,000 Hence option A is correct.