Question: Please help me complete this, I have been struggling for a while and mainly I need the answer. Give Kudos! .b. Assume that Kirsten Corporation
.b. Assume that Kirsten Corporation could use the facilities presently devoted to production of the B345 gaskets to expand production of another product that would yield an additional contribution margin of $10,000 annually. What is the maximum price Kirsten Corporation should be willing to pay the outside supplier for B345 gaskets? (EXTRA CREDIT-2 POINTS) Parsa Incorporated reported the following results from last year's operations: Sales $ 14,000,000 Variable expenses 9,500,000 Contribution margin 4,500,000 Fixed expenses 3,800,000 Net operating income $ 700,000 Average operating assets $ 7,000,000 At the beginning of this year, the company has a $1,100,000 investment opportunity with the following characteristics: .b. Assume that Kirsten Corporation could use the facilities presently devoted to production of the B345 gaskets to expand production of another product that would yield an additional contribution margin of $10,000 annually. What is the maximum price Kirsten Corporation should be willing to pay the outside supplier for B345 gaskets? (EXTRA CREDIT-2 POINTS) Parsa Incorporated reported the following results from last year's operations: Sales $ 14,000,000 Variable expenses 9,500,000 Contribution margin 4,500,000 Fixed expenses 3,800,000 Net operating income $ 700,000 Average operating assets $ 7,000,000 At the beginning of this year, the company has a $1,100,000 investment opportunity with the following characteristics
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
