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2 The manufacturing capacity of Jordan Company's facilities is 30,000 units a year. A summary of operating results for last year follows: A foreign distributor
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The manufacturing capacity of Jordan Company's facilities is 30,000 units a year. A summary of operating results for last year follows: 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: $735,000 $795,000 $915,000. $1,290,000 Step by Step Solution
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