Answer #1-3

Required information (The following information applies to the questions displayed below.] Ohio Limestone Company produces thin limestone sheets used for cosmetic facing on buildings. The following income statement represents the operating results for the year just ended. The company had sales of 1,800 tons during the year. The manufacturing capacity of the firm's facilities is 3,000 tons per year. (Ignore income taxes.) OHIO LIMESTONE COMPANY Income Statement For the Year Ended December 31, 20x1 Sales $900,000 Variable costs: Manufacturing $315,000 Selling costs 180,000 Total variable costs $495,000 Contribution margin $ 405,000 Fixed costs: Manufacturing $100,000 Selling 107,500 Administrative 40,000 Total fixed costs $ 247,500 Net income $157,500 Required: 1. Calculate the company's break-even volume in tons for 20x1. Break-even volume tons 2. Winthe sales retume intestin 2. If the sales volume is estimated to be 2,100 tons in the next year, and if the prices and costs stay at the same levels and amounts, what is the net income that management can expect for 20x2? Projected net income 3. Ohio Limestone has been trying for years to get a foothold in the European market. The company has a potential German customer that has offered to buy 1,500 tons at $450 per ton. Assume that all of the firm's costs would be at the same levels and rates as in 20x1. What net income would the firm earn if it took this order and rejected some business from regular customers so as not to exceed capacity? Net income