Question: I think i did this all correct, please verify Jones Company makes a product that regularly sells for $ 1 4 . 0 0 per
I think i did this all correct, please verify
Jones Company makes a product that regularly sells for $ per unit.
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If JonesCompany has excess capacity, should it accept the offer from NelsonCompany? Show your calculations.
Does your answer change if JonesCompany is operating at capacity? Why or why not?
If Jones Company has excess capacity, should it accept the offer from Nelson Company? Show your calculations. Us
Does your answer change if Jones Company is operating at capacity? Why or why not? Enter an expected decrease
tableRevenue at capacity sale price,Less: Revenue at regular sale price,Expected increasedecrease in revenue,
Jones should the offer if operating at capacity because operating income will decrease by $
Additional Information
The product has variable manufacturing costs of $ per unit and fixed manufacturing costs of $ per unit based on $ total fixed costs at current production of units Therefore, the total production cost is $ per unit. Jones Company receives an offer from Nelson Company to purchase units for $ each. Selling and administrative costs and future sales will not be affected by the sale, and Jones Company does not expect any additional fixed costs.
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