6. %24 iz/attempt.php?attempt3D216068&cmid3D185308&page=D1 The manufacturing capacity of Jordan Company's facilities is 30,000 units a year. A summary of operating results for last year follows: Sales (18,000 units @ 000'008 Variable costs 000'066 Contribution margin 000'018 Fixed costs Net operating income $315,000 A foreign distributor has offered to buy 12,000 units at $95 per unit next year. Jordan expects its regular sales next year to be 20,000 units at $100 per unit. If Jordan accepts this offer for 12,000 units and rejects some business from regular customers so as not to exceed capacity, what is the expected total net operating income for next year? (Assume that the total fixed costs would be the same no matter how many units are produced and sold.) Select one: $795,000 $735,000 Clear my choice pe here to search 81 15 f4 f3 #

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.16E
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6.
%24
iz/attempt.php?attempt3D216068&cmid3D185308&page=D1
The manufacturing capacity of Jordan Company's facilities is 30,000 units a year. A summary of operating
results for last year follows:
Sales (18,000 units @
000'008
Variable costs
000'066
Contribution margin
000'018
Fixed costs
Net operating income
$315,000
A foreign distributor has offered to buy 12,000 units at $95 per unit next year. Jordan expects its regular
sales next year to be 20,000 units at $100 per unit. If Jordan accepts this offer for 12,000 units and rejects
some business from regular customers so as not to exceed capacity, what is the expected total net
operating income for next year? (Assume that the total fixed costs would be the same no matter how many
units are produced and sold.)
Select one:
$795,000
$735,000
Clear my choice
pe here to search
81
15
f4
f3
#
Transcribed Image Text:6. %24 iz/attempt.php?attempt3D216068&cmid3D185308&page=D1 The manufacturing capacity of Jordan Company's facilities is 30,000 units a year. A summary of operating results for last year follows: Sales (18,000 units @ 000'008 Variable costs 000'066 Contribution margin 000'018 Fixed costs Net operating income $315,000 A foreign distributor has offered to buy 12,000 units at $95 per unit next year. Jordan expects its regular sales next year to be 20,000 units at $100 per unit. If Jordan accepts this offer for 12,000 units and rejects some business from regular customers so as not to exceed capacity, what is the expected total net operating income for next year? (Assume that the total fixed costs would be the same no matter how many units are produced and sold.) Select one: $795,000 $735,000 Clear my choice pe here to search 81 15 f4 f3 #
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