Answered

Welcome to Westonci.ca, where curiosity meets expertise. Ask any question and receive fast, accurate answers from our knowledgeable community. Explore in-depth answers to your questions from a knowledgeable community of experts across different fields. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

can produce two types of light fixtures, the indoors model and the outdoors model. if the total sales are expected to be 21,050 units, what would be the totla operating income of the company if it decides to buy the new production equipment

Sagot :

Answer:

$1,000,000    

Explanation:

The computation is shown below:

Particulars               Indoors Model                Outdoors Model            Total

No of Units

(21,050 in ratio 2:3)     8,420                                   12,630                  21,050

Sales                          1,263,000                            2,778,600            4,041,600

Less: Variable costs   168,400                                 505,200              673,600

Contribution margin   1,094,600                            2,273,400               3,368,000

Less: Fixed costs

(2,160,000 + 208,000)                                                                    2,368,000

Operating Income                                                                           1,000,000

View image andromache
We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.