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Fruit Computer Company makes special fruit themed computers. Each unit sells for $420. Fruit Computer Company produces and sells 12,700 units per year. They
Fruit Computer Company makes special fruit themed computers. Each unit sells for $420. Fruit Computer Company produces and sells 12,700 units per year. They have provided the following income statement data: Traditional Format Revenue Contribution Format $5,334,000 Revenue $5,334,000 Cost of goods sold 2.200,000 Variable costs: Gross profit Selling & admin. 3,134,000 Manufacturing 1,000,000 expenses 650,000 Selling & admin. 400,000 Contribution margin 3,934,000 Fixed costs: Manufacturing 1,200,000 Selling & admin. 250,000 Operating income $2,484,000 Operating income $2,484,000 A foreign company has offered to buy 75 units for a reduced sales price of ffort the
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