Spirit Company makes special equipment used in cell towers. Each unit sells for? $400. Spirit produces and sells? 12,500 units per year. They have provided the following income statement? data:

Traditional Format		Contribution Format
Revenue	?$5,000,000	Revenue	?$5,000,000
Cost of goods sold	?2,100,000	Variable? costs:
Gross profit	?2,900,000	?????Manufacturing	?900,000
Selling? & admin. expenses	?550,000	?????Selling? & admin.	?300,000
		Contribution margin	?3,800,000
		Fixed? costs:
		?????Manufacturing	?1,200,000
		?????Selling? & admin.	?250,000
Operating income	?$2,350,000	Operating income	?$2,350,000

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 additional selling and administrative? costs, as it is a? one-time deal. The production manager reports that there is plenty of excess capacity to accommodate the deal without requiring any additional fixed costs. If Spirit accepts the? deal, how will this impact operating? income?