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please complete the table T125-2 (similar to) Jones Company makes a product that regularly sells for $10.00 per unit. (Click the icon to view additional

image text in transcribed please complete the table

T125-2 (similar to) Jones Company makes a product that regularly sells for $10.00 per unit. (Click the icon to view additional information.) 7. If Jones Company has excess capacity, should it accept the offer from Wismer? 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 Wismer? Show your calculations. (Use a minus sign or parentheses to show a decrease in operating income.) Expected increase in revenue $ 66,000 (35,750) Expected increase in variable manufacturing costs Expected increase/(decrease) in operating income $ 30,250 Jones should accept the offer because operating income will increase by $30,250. 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.) 66,000 Revenue at capacity sale price Less: Revenue at regular sale price More Info Expected increase/(decrease) in revenue The product has variable manufacturing costs of $6.50 per unit and fixed manufacturing costs of $2.30 per unit (based on $391,000 total fixed costs at current production of 170,000 units). Therefore, total production cost is $8.80 per unit. Jones Company receives an offer from Wismer Company to purchase 5,500 units for $12.00 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

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