Should bonita salmon operate the year

Assignment Help Managerial Accounting

Reference no: EM132639950

The income statement for Bonita Salmon Sales, which produces smoked salmon, follows:

Revenue (91,500 lbs) $658,800

Expenses Fish $192,150

Smoking materials 18,300

Packaging materials 27,450

Labour (wages) 274,500

Administration 128,100

Sales commissions 9,150

Total expenses 649,650

Pretax income $ 9,150

Assume that the administrative costs are fixed and that all the other costs are variable.

Problem 1: Suppose the provincial government curtails fishing because of low fish counts. As a result, Bonita Salmon Sales can buy only 45,750 lbs of salmon this year. Assume that the selling price, the fixed costs, and the variable costs remain the same as last year. Using only quantitative information, should Bonita Salmon operate this year? Explain your answer, using calculations. (Hint: Before you begin, identify the type of non-routine operating decision, the decision options, and the relevant information for this decision.)

Reference no: EM132639950

Questions Cloud

Should bridgeport make or buy the subassemblies : Should Bridgeport make or buy the subassemblies? Creata schedule that shows the total quantitative differences between the two alternatives.

Explain effect on the cucumber market : Show the effect on the cucumber market if California had a cooler than normal growing season; the FDA releases a study that shows

Negative effect on future economic growth : What is not a way that budget deficits can have a negative effect on future economic growth?

Market system and command economy : Contrast how a market system and a command economy try to cope with economic scarcity.

Should bonita salmon operate the year : The fixed costs, and the variable costs remain the same as last year. Using only quantitative information, should Bonita Salmon operate this year?

Analyse and interpret data as would be found in real world : Analyse and interpret data as would be found in real world situations and to further develop their problem solving and team working skills

Calculate percentage annual growth rates : 1. Calculate percentage annual growth rates using the data that follow.

How important is psychopharmacology to clients : How important is psychopharmacology in mental health services? How important is psychopharmacology to clients? When might there be a need for it?

Find what is the contribution margin per hour of julia time : What is the contribution margin per hour of Julia's time for each game? The production process consists of using her computer to copy the games to blank DVDs

User Account

All Pages