Question: Fruit Computer Company makes special fruit themed computers. Each unit sells for $400. Fruit Computer Company produces and sells 12.600 units per year. They have

 Fruit Computer Company makes special fruit themed computers. Each unit sells

Fruit Computer Company makes special fruit themed computers. Each unit sells for $400. Fruit Computer Company produces and sells 12.600 units per year. They have provided the following income statement data: Traditional Format Revenue Cost of goods sold Gross profit Selling & admin expenses Contribution Format $5,000,000 Revenue 2.200 Variable costs 2.140.000 Manufacturing 55.040.000 1.000.000 400.000 3640 od 660.00 Belling & Admin Contribution main Fixed costs Manufacturing Selling & admin 5 400 000 Operating income 1.900.000 260.000 $140. Operating income A foreign company has offered to buy 75 units for a reduced sales price of $300 per unit. The marketing manager says the sale will not affect the company's regular sales. The sales manager says that this sale will require variable selling and administrative costs. The production manager reports that it would require an additional $25.000 of feed manufacturing costs to accommodate the specifications of the buyer. I Fruit Computer Company accepts the deat how will this impact operating income? Round any intermediate calculations to the nearest cent and your finanswer to the nearest dollar) Operating income will decrease by $10.054 Operating income will increase y $22.500 Operation will decree by 514 167 Operating income will increase ty 510.034

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