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 Fixed costs 810,000 495,000 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.
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 Fixed costs 810,000 495,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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
990,000
Variable costs
Contribution margin
810,000
Fixed costs
Net operating income
495,000
$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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