Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Oriole Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distriutor from Florida has approached Oriole and offered to purchase
Oriole Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distriutor from Florida has approached Oriole and offered to purchase 245000 pounds of dog food for $1.40 per pound. Oriole can produce 2010000 pounds of dog food per year, and its results for last year are as follows: sales (1825000 at $1.65) $3011250, Varialble cost 1095000, Contribution margin 1916250, Fixed costs 795000, operating income $1121250. If Oriole accepts the offer, it will only be able to sell 1765000 pounds of dog food at the regular price due to ists capacity constraints. What will Oriole's total operating income be next year if it accepts the offer?
Step by Step Solution
★★★★★
3.29 Rating (158 Votes )
There are 3 Steps involved in it
Step: 1
Analyzing Orioles Decision and Income Offer Details Quantity245000 pounds Price140 per poun...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started