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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
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 Contribu Revenue $5,000,000 Revenue Cost of goods sold 2,000,000 Variable Gross profit 3,000,000 Manufact Selling & admin. expenses 725,000 Selling & Contribu Fixed cos Manufact Selling & Operating income $2.275.000 Operatin A foreign company has offered to buy 80 units for a reduced sales price of $320 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 $20,000 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.)
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