Mobile Concepts makes special equipment used in cell towers. Each unit sells for

$ 400$400.

Mobile Concepts uses

justminusinminustime

inventory procedures; it produces and sells

12 comma 50012,500

units per year. It has provided the following income statement data:

Traditional Format			Contribution Margin Format
Sales revenue	$5 comma 000 comma 0005,000,000		Sales revenue	$5 comma 000 comma 0005,000,000
Cost of goods sold	3 comma 200 comma 0003,200,000		Variable costs:
Gross profit	1 comma 800 comma 0001,800,000		Manufacturing	1 comma 200 comma 0001,200,000
Selling & admin. expenses	660 comma 000660,000		Selling & admin.	400 comma 000400,000
			Contribution margin	3 comma 400 comma 0003,400,000
			Fixed costs:
			Manufacturing	2 comma 000 comma 0002,000,000
			Selling & admin.	260 comma 000260,000
Operating income	$1 comma 140 comma 0001,140,000		Operating income	$1 comma 140 comma 0001,140,000

A foreign company has offered to buy

100100

units for a reduced sales price of

$ 250$250

per unit. The marketing manager says the sale will have no negative impact on the company's regular sales. The sales manager says that this sale will not require any 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 Mobile Concepts 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.)

A.Operating income will increase by

$ 15 comma 400$15,400.

B.Operating income will increase by

$ 25 comma 000$25,000.

C.Operating income will decrease by

$ 15 comma 400$15,400.

D.Operating income will decrease by

$ 25 comma 000$25,000.