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Jones company makes a product that regularly sells for $14.50 per unit 8. does your answer change if Jones company is operating at capacity why
Jones company makes a product that regularly sells for $14.50 per unit
your llations More Info The product has variable manufacturing costs of $11.00 per unit and fixed manufacturing costs of $2.20 per unit (based on $176,000 total fixed costs at current production of 80,000 units). Therefore, total production cost is $13.20 per unit. Jones Company receives an offer from Wellington Company to purchase 5,600 units for $9.50 each. Selling and administrative costs and future sales will not be affected by the sale, and Jones does not expect any additional fixed costs. Print Done operating income will next question 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 re Revenue at capacity sale price Less: Revenue at regular sale price Expected increasel(decrease) in revenue Jones should the offer if operating at capacity because operating income will Enter any number in the edit fields and then continue to the next 8. does your answer change if Jones company is operating at capacity why or why not?
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