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Springer is the President and CEO of Springer Wrestling Company, a manufacturer and wholesaler of wrestling equipment based out of DeKalb, Illinois. Mr. Springer has

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Springer is the President and CEO of Springer Wrestling Company, a manufacturer and wholesaler of wrestling equipment based out of DeKalb, Illinois. Mr. Springer has recently received an offer for his form to purchase wrestling headgear from an outside supplier for $16 per unit. This offer has intrigued Mr. Springer, as the current unit product cost for the headgear is 521 per unit (see below). Direct Materials Direct Labor 20,000 Units $140,000 60,000 20,000 200.000 $420,000 Per Unit $7.00 3.00 1.00 10.00 $21.00 Variable Overhead Fixed Overhead Product Cost In addition to the per unit cost savings, if Mr. Springer stopped making headgear, his company could use the newly available factory space and machinery to generate an additional $80,000 of contribution margin. By how much would NOI change if Springer Wrestling Company stopped making headgear? NOI would increase by $180,000 NOI would increase by $100,000 NOI would decrease by $100.000 NOI would decrease by $20,000

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