The manufacturing capacity of Jordan Company's facilities is 30,000 units per year. Last year's operating results...

 

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The manufacturing capacity of Jordan Company's facilities is 30,000 units per year. Last year's operating results are as follows: Sales (18,000 units @ $100) $1,800,000 Variable costs 990,000 Contribution margin 810,000 Fixed costs Net operating income 495,000 $ 315,000 A foreign distributor has offered to buy 15,000 units next year at a price of $90 per unit. If Jordan accepts the offer it can sell only 15,000 units at the regular price in order not to exceed capacity. What will be the company's total net operating income next year? (a) $1.335,000 (b) $ 840,000 (c) $855,000 (d) $ 705,000 The manufacturing capacity of Jordan Company's facilities is 30,000 units per year. Last year's operating results are as follows: Sales (18,000 units @ $100) $1,800,000 Variable costs 990,000 Contribution margin 810,000 Fixed costs Net operating income 495,000 $ 315,000 A foreign distributor has offered to buy 15,000 units next year at a price of $90 per unit. If Jordan accepts the offer it can sell only 15,000 units at the regular price in order not to exceed capacity. What will be the company's total net operating income next year? (a) $1.335,000 (b) $ 840,000 (c) $855,000 (d) $ 705,000

Answer rating: 100% (QA)

d 705000 Revenues 15000 x 100 150... View the full answer