Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
mombefor78 mombefor78
wrote...
Go to Answer
Posts: 136
Rep: 0 0
A year ago
Impala Industries manufactures a component used by car manufacturers. Impala can produce 1,000,000 components per year. A foreign car manufacturer has approached Impala with an offer to purchase 120,000 components at price of $6 per unit. Impala's results for last year are as follows:

Sales (900,000 at $8)$7,200,00
Variable costs2,700,000
Contribution margin4,500,000
Fixed costs2,350,000
Operating income$2,150,000

If Impala accepts the offer, it will only be able to sell 880,000 units at the regular price due to its capacity constraints. What will Impala's total operating income be next year if it accepts the offer?

▸ $2,710,000

▸ $2,650,000

▸ $4,760,000

▸ $2,410,000
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 54 times
1 Reply
Replies
Answer verified by a subject expert
jvigil33jvigil33
wrote...
#1
Posts: 136
Rep: 2 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

mombefor78 Author
wrote...

A year ago
Thanks
shimyshiguy
wrote...

Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
kevin12323h
wrote...

2 hours ago
Thank you, thank you, thank you!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1359 People Browsing
 131 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 276
  
 4284
  
 330
Your Opinion
What's your favorite funny biology word?
Votes: 328
Previous poll results: Which of the following is the best resource to supplement your studies: