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Current Attempt in Progress Carla Vista Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has
Current Attempt in Progress Carla Vista Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has approached Carla Vista and offered to purchase 249000 pounds of dog food for $1.40 per pound. Carla Vista can produce 2018000 pounds of dog food per year, and its results for last year are as follows: Sales (1829000 at $3017850 $1.65) Variable costs 1097400 Contribution margin 1920450 Fixed costs 799000 Operating income $1121450 If Carla Vista accepts the offer, it will only be able to sell 1769000 pounds of dog food at the regular price due to its capacity constraints. What will Carla Vista's total operating income be next year if it accepts the offer? $2056650 $1371050 $1319900 $1257650
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