Wildhorse Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has approached Wildhorse and offered to purchase 262000 pounds of dog food for $1.40 per pound. Wildhorse can produce 2044000 pounds of dog food per year, and its results for last year are as follows: Sales (1842000 at $1.65) Variable costs Contribution margin Fixed costs Operating income O $2080700 O $1389900 $3039300 O $1268700 O $1334200 1105200 1934100 812000 If Wildhorse accepts the offer, it will only be able to sell 1782000 pounds of dog food at the regular price due to its capacity constraints. What will Wildhorse's total operating income be next year if it accepts the offer? $1122100
Wildhorse Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has approached Wildhorse and offered to purchase 262000 pounds of dog food for $1.40 per pound. Wildhorse can produce 2044000 pounds of dog food per year, and its results for last year are as follows: Sales (1842000 at $1.65) Variable costs Contribution margin Fixed costs Operating income O $2080700 O $1389900 $3039300 O $1268700 O $1334200 1105200 1934100 812000 If Wildhorse accepts the offer, it will only be able to sell 1782000 pounds of dog food at the regular price due to its capacity constraints. What will Wildhorse's total operating income be next year if it accepts the offer? $1122100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Uramilaben
Transcribed Image Text:Wildhorse Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from
Florida has approached Wildhorse and offered to purchase 262000 pounds of dog food for $1.40 per pound. Wildhorse can produce
2044000 pounds of dog food per year, and its results for last year are as follows:
Sales (1842000 at
$1.65)
Variable costs
Contribution margin
Fixed costs
Operating income
$2080700
O $1389900
$3039300
O $1268700
O $1334200
1105200
1934100
812000
If Wildhorse accepts the offer, it will only be able to sell 1782000 pounds of dog food at the regular price due to its capacity
constraints. What will Wildhorse's total operating income be next year if it accepts the offer?
$1122100
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education