The manufacturing capacity of Impact Engineering's facilities is 30,000 units per year. Last 7. year's...
50.1K
Verified Solution
Link Copied!
Question
Accounting
The manufacturing capacity of Impact Engineering's facilities is 30,000 units per year. Last 7. year's operating results follow: Sales (18,000 units @$100) Variable costs 1,800,000 900,000 900,000 495,000 405,000 Contribution Margin Fixed Costs Net operating income A foreign distributor has offered to buy 15,000 units next year at a price of $90 per unit. If Impact accepts the offer it can only sell 15,000 at the regu lar price in order not to exceed pacity. Required: What will be Impact's total net operating income next year if they accept the special a. order? b. Based on your answer to (a) above, would you advise Impact to accept the special order? Would qualitative factors should the management of Impact consider when making . this decision
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
