Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Question 22 10 Fruit Computer Company makes special fruit themed computers. Each unit sells for $400. Fruit Comouter Company produces and sells 12.700 units per

image text in transcribed
Question 22 10 Fruit Computer Company makes special fruit themed computers. Each unit sells for $400. Fruit Comouter Company produces and sells 12.700 units per year. They have provided the following income statement data Traditional Format Revenue Cost of goods sold Grou proht Selling & admin penses Contribution Format $5,080.00 Revenue 2.800.000 Variable costs 2.200.000 Mantacting 55.080,000 900.000 400.000 3.780,000 660.00 Selling admin Contribution margin Fixed costs Manufacturing Selling in 31.20.cooperating income 1.900.000 260.000 51620.000 Operating income A foreign company has offered to buy 75 units for a reduced sales price of $350 per unit. The marketing uy the sale w not affect the company regulares. The sales manager says that this we will require variable selling and administrative costs. The production manager reports that it would require an additional $30.000 of fund manufacturing costs to accommodate the specifications of the buyer. If Fruit Computer Company accepts the deal how will the impact operating income? Pound any intermediate calculations to the newest cent, and your final answer to the nearest dollar) Opercome will increase by 511428 Opening will decrease by 511428 Operating income wilden 518573 Oorsing come will not by 526250

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Corporate Finance

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

5th Edition

9780135811603

Students also viewed these Accounting questions