Question Belfry Company makes special equipment used in cell towers. Each unit sells for $400. Belfry produces and sells 12,700 units per year. They have provided ollowing income statement data: $5,080,000 Traditional Format Sales revenue Cost of goods sold Gross profit Selling & admin. expenses $5,080,000 2,800,000 2,280,000 725,000 Contribution Margin Format Sales revenue Variable costs: Manufacturing Selling & admin Contribution margin Fixed costs: Manufacturing Selling & admin Operating income 900,000 500,000 3,680,000 1,900,000 225,000 $1,555.000 Operating income $1,555,000 O A. Operating income will decrease by $20,380 OB. Operating income will increase by $29,750. OC. Operating income will increase by $4,620 OD. Operating income will decrease by $4.620. Question Help Cost of goods sold 2,800,000 Variable costs: Gross profit 2,280,000 Manufacturing 900,000 Selling & admin. expenses 725,000 Selling & admin 500,000 Contribution margin 3,680,000 Fixed costs: Manufacturing 1,900,000 Selling & admin 225,000 Operating income $1,555,000 Operating income $1,555,000 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 it would require an additional $25,000 of fixed manufacturing costs to accommodate the specifications of the buyer. If Belfry 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.) O A. Operating income will decrease by $20,380. OB. Operating income will increase by $29.750 Oc. Operating income will increase by $4,620 OD. Operating income will decrease by $4,620