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Jones company makes a product that regularly sells for $14.50 Per unit. If Jones...

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Accounting

Jones company makes a product that regularly sells for $14.50 Per unit.
If Jones company has excess capacity should I accept the offer from Wellington? show your calculations
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offer from Wellington? Show your calculations. More Info . X The product has variable manufacturing costs of $11.00 per unit and fixed manufacturing costs of $2.20 per unit (based on $176.000 total fixed costs at current production of 80,000 units) Therefore, total production cost is $13.20 per unit. Jones Company receives an offer from Wellington Company to purchase 5,600 units for $9.50 each. Selling and administrative costs and future sales will not be affected by the sale, and Jones does not expect any additional fixed costs Print Done operating income will decrease by $8.400 company is operating at capacity? Why or wh 7. If Jones Company has excess capacity, should it accept the offer from Wellington? Expected increase in revenue Expected increase in variable manufacturing costs Expected increasel(decrease) in operating income Jones should the offer because operating income will

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