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am #2 _ Chapter 3 ' Question 19, E346 (similar to) > HW Score: 53.3%, 10.56 of 20 points Part1 of6 i ,- Points: 0
am #2 _ Chapter 3 ' Question 19, E346 (similar to) > HW Score: 53.3%, 10.56 of 20 points Part1 of6 i ,- Points: 0 of1 The manufacturing capacity of Donaldson Rotator Company's plant taCIlity is 52,000 rotatdrs per quarter Requirements '6 Operating VBSUIIS \"if the flfSt quarter OWNS year are 35 {OHOWS [3) Determine the impact on operating income if Donaldson accepts this order What other Sales (31000 Units at $19) 5 589,000 conSIderatIons are relevant in this decISIon'? A 167 400 [b] Assume that Donaldson decides to run an extra shift so that It can accept the foreign order Variable Manufacturing and Selling Costs = without forgoing sales to its regular domestic customers The proposed extra shift would . . increase capaCIty by 25% and Increase xed costs by $20000 Determine the Impact on Contribution Margin 421'600 operating Income If Donaldson operates the extra shift and accepts the export order What Fixed C0515 97-000 other considerations are relevant In this deCIsion'? 5 324.600 Operating Income Afdreign distributor has offered to buy 26000 units at 518 per unit during the second quarter ofthis year Domestic demand is expected to remain the same as in the first quarter. Requirement (a] Determine the Impact on operating Income if Donaldson accepts this order, What other considerations are relevant In this decision? Begin by determining the operating income for Donaldson during the second quarter of this year Sales Variable manufacturing and selling costs Contrihution margin Fixed costs Operating income
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