Oriole Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distriutor from Florida has approached Oriole and offered to purchase 245000 pounds of dog food for $1.40 per pound. Oriole can produce 2010000 pounds of dog food per year, and its results for last year are as follows: sales (1825000 at $1.65) $3011250, Varialble cost 1095000, Contribution margin 1916250, Fixed costs 795000, operating income $1121250. If Oriole accepts the offer, it will only be able to sell 1765000 pounds of dog food at the regular price due to ists capacity constraints. What will Oriole's total operating income be next year if it accepts the offer?

Answer rating: 100% (QA)

Analyzing Orioles Decision and Income Offer Details Quantity245000 pounds Price140 per poun... View the full answer