Question

Suckert Company manufactures lacrosse sticks. The company’s capacity is 4,500 sticks per month; however, it currently sells only 3,000 sticks per month. Long Meadow Sports has offered to buy 700 lacrosse sticks for $50 each from Suckert. Normally, the company sells its sticks for $65. Suckert’s accounting records report the cost of each stick to be $40, including fixed costs of $20 each.

Required
If Suckert were to accept Long Meadow’s offer, what would be the impact on Suckert’s income?



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  • CreatedMarch 11, 2015
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