Question
The manufacturing capacity of Jordan Company's facilities is 35,000 units a year. A summary of operating results for last year follows: Sales (18,000 units @
The manufacturing capacity of Jordan Company's facilities is 35,000 units a year. A summary of operating results for last year follows:
| Sales (18,000 units @ $100) | $1,800,000 |
| Variable costs | 990,000 |
| Contribution margin | 810,000 |
| Fixed costs | 495,000 |
| Net operating income | $315,000 |
A foreign distributor has offered to buy 15,000 units at $90 per unit next year. Jordan expects its regular sales next year to be 18,000 units. Compute whether the company should accept this special order. You may use the Excel spread sheet to complete your answer. Copy and paste your answer from Excel to Blackboard in the space provided.
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Fundamental financial accounting concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
8th edition
978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365
