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4. Jensen Corporation manufactures aircraft engine assemblies and sells them lo aircraft manufacturers the United States. Operating at 85% manufacturing 3,000 engine assemblies. The following
4. Jensen Corporation manufactures aircraft engine assemblies and sells them lo aircraft manufacturers the United States. Operating at 85% manufacturing 3,000 engine assemblies. The following selling price and cost informationis associated with the manufacturing process Jensen Corporation is Selling Price ($2,200 each) Direct Materials ($500 each) Direct Labor ($350 each) Variable Manufacturing Overhead ($325 each)975,000 $6,600,000 $1,500,000 1,050,000 Fixed Manufacturing Overhead ($400each)1200,000 4725,000 Operating Profit $1,875,000 On June 19,2018, the company receives an offerfrom Svetlana Aircraft Company (a foreign company)to time sale, and the company has no immediate expectation of branching into this foreign market. Since the buyer will pay all of the costs to ship theassemblies, there will beno additional costs to Jensen Corporation beyond the manufacturing costs engine assemblies for $1,250 each. If accepted, this will be a ope A. Determine if Jensen Corporation has the capacity to manufacture and sell these additional engine assemblies B. ShouldJensen Corporation sell the additional engine assemblies to the foreign company? Explain your answer and support It with the appropriate incremental analysis
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