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TI25-2 (similar to) Lewis Company makes a product that regularly sells for $15.50 per unit. 1 (Click the icon to view additional information.) 7. If
TI25-2 (similar to) Lewis Company makes a product that regularly sells for $15.50 per unit. 1 (Click the icon to view additional information.) 7. If Lewis Company has excess capacity, should it accept the offer from Wismer? Show your calculations 8. Does your answer change if Lewis Company is operating at capacity? Why or why not? -Question Help * 7. If Lewis Company has excess capacity, should it accept the offer from Wismer? Show your calculations. (Use a minus sign or parentheses to show a decrease in operating income.) Expected increase in revenue Expected increase in variable manufacturing costs Expected increase/(decrease) in operating income Lewis should reject the offer because operating income will decrease by $6,300 8. Does your answer change if Lewis Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with a minus sign or parentheses.) Revenue at capacity sale price Less: Revenue at regular sale price Expected increase/(decrease) in revenue 42,000 48,300) (6,300) Enter any number in the edit fields and then click Check Answer part remaining Clear All Final Check TI25-2 (similar to) Lewis Company makes a product that regularly sells for $15.50 per unit. 1 (Click the icon to view additional information.) 7. If Lewis Company has excess capacity, should it accept the offer from Wismer? Show your calculations 8. Does your answer change if Lewis Company is operating at capacity? Why or why not? -Question Help * 7. If Lewis Company has excess capacity, should it accept the offer from Wismer? Show your calculations. (Use a minus sign or parentheses to show a decrease in operating income.) Expected increase in revenue Expected increase in variable manufacturing costs Expected increase/(decrease) in operating income Lewis should reject the offer because operating income will decrease by $6,300 8. Does your answer change if Lewis Company is operating at capacity? Why or why not? (Enter an expected decrease in revenue with a minus sign or parentheses.) Revenue at capacity sale price Less: Revenue at regular sale price Expected increase/(decrease) in revenue 42,000 48,300) (6,300) Enter any number in the edit fields and then click Check Answer part remaining Clear All Final Check
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