Reference no: EM13854661

The maufacturing capacity of Morrow Company's facilities is 30,000 units of a product per yesr. A sammary of operating results for the year ended December 31, 2015 is as follows: Revenue 18,000 units X$100 $ 1,800,000 Variable costs 990,000 ------------ Conttribution margen 810,000 Fixed Cost 495,000 --------- Operating income $ 315,000 A foreign distributor has offered to buy 15,000 units at $90 per unit during 2016. Assume all of Morrow's cost will have the same behavior patterns in 2016 as in 2015. If Morrow accepted this offer and rejects 3,000 units of business from regular customers so as not to exceed its capacity, find the total operating income for 2016.