Fruit Computer Company makes special fruit themed computers. Each unit sells for $400. Fruit Computer Company produces and sells 12,500 units per year. They have provided the following income statement data: Traditional Format Contribution Format Revenue $5,000,000 Revenue $5,000,000 Cost of goods sold 2,700,000 Variable costs: Gross profit Selling & admin. expenses 2,300,000 Manufacturing 800,000 525,000 Selling & admin. 300,000 Contribution margin 3,900,000 Fixed costs: Manufacturing 1,900,000 Selling & admin. Operating income $1,775,000 Operating income 225,000 $1,775,000 A foreign company has offered to buy 85 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