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Jones Company makes a product that regularly sells for $14.00 per unit. (Click the icon to view additional information.) 7. If Jones Company has excess
Jones Company makes a product that regularly sells for $14.00 per unit. (Click the icon to view additional information.) 7. If Jones Company has excess capacity, should it accept the offer from Wellington? Show your calculations. 8. Does your answer change if Jones Company is operating at capacity? Why or why not? 7. If Jones Company has excess capacity, should it accept the offer from Wellington? Show your calculations. (Use a minus sign or parentheses to show a decrease in operating income.) Expected increase in revenue Expected increase in variable manufacturing costs Expected increase/(decrease) in operating income Jones should the offer because operating income will 8. Does your answer change if Jones Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with a minus sign or parentheses.) Revenue at capacity sale price Less: Revenue at regular sale price Expected increase/(decrease) in revenue Jones should the offer if operating at capacity because operating income will
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