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The income statement forTamarisk Salmon Sales, which produces smoked salmon, follows: Revenue (95,300 lbs) $762,400 Expenses Fish $190,600 Smoking materials 19,060 Packaging materials 19,060 Labour

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The income statement forTamarisk Salmon Sales, which produces smoked salmon, follows: Revenue (95,300 lbs) $762,400 Expenses Fish $190,600 Smoking materials 19,060 Packaging materials 19,060 Labour (wages) 324,020 Administration 133,420 Sales commissions 9,530 Total expenses 695,690 Pretax income 3; 66,710 Assume that the administrative costs are xed and that all the other costs are variable. Suppose the provincial government curtails fishing because of low fish counts. As a result, Tamarisk Salmon Sales can buy only 47,650 lbs of salmon this year. Assume that the selling price, the xed costs, and the variable costs remain the same as last year. Using only quantitative information, should Tamarisk Salmon operate this year? Explain your answer, using calculations. (Hint: Before you begin, identify the type of non-routine operating decision, the decision options, and the relevant information for this decision.) (Round answer to 2 decimal places, e.g. 5.35.) If the xed costs can be avoided by not producing, the oompany produce this year. If the xed costs can not be avoided by not producing, the company produce this year. Assume that Tamarisk Salmon can buy up to 67,760le of fish at $2.00]le and that the remainder of the fixed and variable costs remain the same as last year. Also assume that the selling price remains the same as last year and that the market will purchase at least another 30,110 lbs of fish. If the managers of Tamarisk Salmon Wish to sell more salmon, what should they be willing to pay to purchase more fish? (Hint: This type of decision is different from the one in the preVious part. Before you begin, identify the type of nonrroutine decision, the decision options, and the relevant information for this decision.) (Round answer to 2 decimal pieces, e.g. 5.35.) W-"m to P3\" $: per lb salmon

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