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1 12 1. Sprint Company makes special equipment used in cell towers. Each unit sells for $400. Sprint produces and sells 12,500 units per year.
1 12 1. Sprint Company makes special equipment used in cell towers. Each unit sells for $400. Sprint produces and sells 12,500 units per year. They have provided the following income statement data: CM Income Statement Revenue $5,000,000 Variable Expenses Manufacturing $1,000,000 Selling & Administration $400,000 Contribution Margin $3,600,000 Fixed Expenses Manufacturing $2,000,000 Selling & Administration $250,000 Operating Income $1,350,000 A foreign company has offered to buy 100 units for a reduced price of $250 per unit. The marketing manager says the sale will not negatively affect the company's regular sales. The sales manager says that this sale will require incremental selling & administrative costs, as it is a one- time deal. The production manager reports that it would require an additional $30,000 of fixed manufacturing costs to accommodate the specifications of the buyer. If Sprint accepts the deal, how will this impact operating income
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