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please answer ASAP Jones Company makes a product that regularly sells for $15.50 per unit. (Click the icon to view additional information.) 7. If Jones
please answer ASAP
Jones Company makes a product that regularly sells for $15.50 per unit. (Click the icon to view additional information.) 7. If Jones Company has excess capacity, should it accept the offer from Wesley? Show your calculations. 8. Does your answer change if Jones Company is operating at capacity? Why or why not? More info The product has variable manufacturing costs of $8.00 per unit and fixed manufacturing costs of $2.50 per unit (based on $375,000 total fixed costs at current production of 150,000 units). Therefore, total production cost is $10.50 per unit. Jones Company receives an offer from Wesley Company to purchase 4,400 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. 7. Hf Jones Company has excess capacily, should it accept the offer from Wesley? Show your calculations. (Use a minus sign or parentheses to show a deciease in opernting income) Jones should the offer because operating income will 8. Does your answer change 1 Jones Company is operating at capacity? Whry or why not? (Enter an expected docrease in revenue with a minus sign ot parsitheses.) Jones showld the oler if operating at capacty because operating income wit Step by Step Solution
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