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jscubs1 jscubs1
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A year ago
Lark Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has approached Lark and offered to purchase 240,000 pounds of dog food for $1.40 per pound. Lark can produce 2,000,000 pounds of dog food per year, and its results for last year are as follows:

Sales (1,820,000 at $1.65)$3,003,000
Variable costs1,092,000
Contribution margin1,911,000
Fixed costs   790,000
Operating income$1,121,000

If Lark accepts the offer, it will only be able to sell 1,760,000 pounds of dog food at the regular price due to its capacity constraints. What will Lark's total operating income be next year if it accepts the offer?

▸ $1,310,000

▸ $2,040,000

▸ $1,358,000

▸ $1,250,000
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Managerial Accounting

Managerial Accounting


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duankong-feiduankong-fei
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A year ago
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jscubs1 Author
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A year ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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