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Luna Company makes special equipment used in cell towers Each unit sells for $420. Luna produces and sells 12.600 units per year. They have provided

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Luna Company makes special equipment used in cell towers Each unit sells for $420. Luna produces and sells 12.600 units per year. They have provided the following income statement data Traditional Format Contribution Format Revenue 55.292.000 Revenue 55292.000 Cost of goods sold 3.000.000 Variable costs Gross profit 2292.000 Manufacturing 1.000.000 Selling & admin. expenses 570.000 Selling & admin. Contribution margin 3,992000 Fored costs Manufacturing 2.000.000 Seling & admin 270.000 Operating income $1,722.000 Operating income $1.722.000 O A. Operating income will decrease by S29,750 OB. Operating income will increase by 520,900 OC. Operating income will decrease by 520,980 OD. Operating income will increase by $29.750 A foreign company has offered to buy 85 units for a reduced sales price of $350 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 there is plenty of excess capacity to accommodate the deal without requiring any additional fixed costs. If Luna 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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