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Philco Electronics manufactures traffic cameras for municipalities in North America. Below is data regarding the company's current operations: A large European country has offered to

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Philco Electronics manufactures traffic cameras for municipalities in North America. Below is data regarding the company's current operations: A large European country has offered to purchase 4,000 cameras but is asking for a 15% discount off the regular selling price. They are also asking for a substitution of one of the lenses used in the cameras involved that will add $25 to the cost of each camera. Philco can save $15.00 per unit in sales commissions on this order. a) Should Philco accept this offer (show all work)? ( 8 marks) b) If they accepted, what would be the effect on operating income? ( 2 marks)

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