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Please Help ME ASAP!!! THAnk yoiu Crane Industries manufactures a component used by car manufacturers. Crane can produce 1026000 components per year. A foreign car
Please Help ME ASAP!!! THAnk yoiu
Crane Industries manufactures a component used by car manufacturers. Crane can produce 1026000 components per year. A foreign car manufacturer has approached Crane with an offer to purchase 133000 components at price of $6 per unit. Crane's results for last year are as follows: Sales (913000 at $8) $7304000 Variable costs 2739000 Contribution margin 4565000 Fixed costs 2363000 Operating income $2202000 If Crane accepts the offer, it will only be able to sell 893000 units at the regular price due to its capacity constraints. What will Crane's total operating income be next year if it accepts the offer? O $4864000 O $2767000 O $2501000 O $2840000Step by Step Solution
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