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Wildhorse Industries manufactures a component used by car manufacturers. Wildhorse can produce 1022000 components per year. A foreign car manufacturer has approached Wildhorse with an
Wildhorse Industries manufactures a component used by car manufacturers. Wildhorse can produce 1022000 components per year. A foreign car manufacturer has approached Wildhorse with an offer to purchase 131000 components at price of $6 per unit. Wildhorse's results for last year are as follows: B Sales (911000 at $8) Variable costs Contribution margin Fixed costs Operating income $7288000 $2820000 O $2487000 O $2749000 O $4848000 2733000 4555000 2361000 If Wildhorse accepts the offer, it will only be able to sell 891000 units at the regular price due to its capacity constraints. What will Wildhorse's total operating income be next year if it accepts the offer? $2194000 S SUPPORT of the Is-stor on valu anies- ining b s refer n of the idable Of the ess at he busir n of the sive c profess ion?-t ng the ed ot a Pages
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