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Cullumber Industries manufactures a component used by car manufacturers. Cullumber can produce 1006000 components per year. A foreign car manufacturer has approached Cullumber with an

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Cullumber Industries manufactures a component used by car manufacturers. Cullumber can produce 1006000 components per year. A foreign car manufacturer has approached Cullumber with an offer to purchase 123000 components at price of $6 per unit. Cullumber's results for last year are as follows: Sales (903000 at $8) $7224000 Variable costs 2709000 Contribution margin 4515000 2353000 Fixed costs Operating income $2162000 of Cullumber accepts the offer, it will only be able to sell 883000 units at the regular price due to its capacity constraints. What will Cullumber's total operating income be next year if it accepts the offer? $2431000 O $2740000 O $4784000 $2677000

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