Fruit Computer Company makes special fruit themed computers. Each unit sells for $420. Fruit Computer Company produces and sells 12,500 units per year. They have provided the following income statement data: 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 fixed manufacturing costs to accommodate the specifications of the buyer. If Fruit Computer Company accepts the deal, how will this impact operating income? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.) Operating income will decrease by $14,700. Operating income will increase by $22,500. Operating income will increase by $10,300. Operating income will decrease by $10,300. Fruit Car Company manufactures 10 fruit themed cars per month. A compact media center is included in each car. Fruit Car Company manufactures the media center in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $280, and the fixed costs are $41,000 per month. The CEO, wishes to increase operating income by $4000. He has an offer from a foreign producer to provide the media centers at a contract cost $350 per unit. The required savings in fixed costs in order to achieve his objective would be $700 $4700 $4000 $2800 Fruit Boat Company manufactures 10 fruit themed boats per month. A navigation system is included in each boat. Fruit Boat Company manufactures the navigation system in-house but is considering the possibility of outsourcing this function. At present, the variable cost per unit is $300, and the fixed costs are $40,000 per month. If it outsources the navigation system, fixed costs could be reduced by half, and the vacant facilities could be rented out to earn $3000 per month of rental income. What is the maximum contract cost that Fruit Boat Company should pay for outsourcing? any cost lower than $4000 per unit any cost lower than $300 per unit any cost lower than $2300 per unit any cost lower than $2600 per unit