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Rogers Company makes a product that regularly sells for $15.00 per unit. (Click the icon to view additional information.) 7. If Rogers Company has excess
Rogers Company makes a product that regularly sells for $15.00 per unit. (Click the icon to view additional information.) 7. If Rogers Company has excess capacity, should it accept the offer from Poweli? Show your calculations 8. Does your answer change if Rogers Company is operating at capacity? Why or why not? 7. If Rogers Company has excess capacity, should it accept the offer from Powell? Show your calcuilations. (Use a minus sign or parentheses to show a decrease in operating income) Expected increase in revenue Expected increase in variable manufacturing costs Rogers should I | the oeer because operating ncome will 8. Does your answer change if Rogers Company is operating at capacity? Why or why not? (Enter an expected decrease h reverue with a minus sign or parenthosos) Revenue at capacity sale price Less: Revenue at regular sale price More Into n reverue The product has variable manufacturing costs of $11.50 per unit and fioxed Rogers should | the offer if operating at capacity because operang g n manufacturrg costs of $1 60 per unit Cbased on S230.000 ota ted costs at manu curent producton of 80,000 units) Therefore, total producton cost $13.10 per unit Rogers Company recelves an offler from Powell Company to purchase 4,400 units for $8.50 each. Selling and administrative cos's and future sales will not be affected by the sale, and Ragers does not expect any additional fixed oosts Enter any number in the edit fields and then continue to the next question Print Done 2 3 6 W E
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