QUESTION 31 Mobile Concepts makes special equipment used in cell towers. Each unit sells for $400. Mobile Concepts uses just-in-time inventory procedures; it produces and sells 12,500 units per year. It has provided the following income statement data $5,000,000 Traditional Format Sales revenue Cost of goods sold Gross profit Selling & admin, expenses 1.200.000 Contribution Margin Format 55.000,00 Sales revenue 3.100.000 Variable costs: 1,900,000 Manufacturing 220.0od Selling admin Contribution margin Fixed costs Manufacturing 500.00 3.300.000 Selling & admin 51.120.000 Operating income $1.130.0od Operating income A foreign company has offered to buy 100 units for a reduced sales price of $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 dolara Operating income will decrease by $25,000. Operating income will increase by $15,400. Operating income will increase by $25,000. Operating income will decrease by $15.400 QUESTION 40 Gloria Ammon has just won the state lottery and has the following three payout options for after tax prize money 1.564.000 per year at the end of each of the next six years 2.5304,000 (lump sum) now 3. $502.000 (lump sum) six years from now The annual discount rate is 9%. Compute the present value of the third option (Round to nearest whole dollar) Present value of $1: 1096 0.926 0.917 0.909 0.826 0.772 0.564 0.513 0.547 $98,133 $299,192 $240,000 $101.717