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The manufacturing capacity of Jordan Companys facilities is 30,000 units per year. Last years operating results are as follows: Sales(18,000@$100) $1,800,000; Variable costs $990,000; Contribution
The manufacturing capacity of Jordan Companys facilities is 30,000 units per year. Last years operating results are as follows: Sales(18,000@$100) $1,800,000; Variable costs $990,000; Contribution margin $810,000; Fixed costs $495,000; Operating income $315,000. A foreign distributor has offered to buy 15,000 units next year at a orice of $90 per unit. If Jirdan accepts the offer it can sell only 15,009 units at the regular price in order not to exceed capacity. What will be the companys operating income next year?
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