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What is the available capacity of park ltd

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Park Ltd produces financial calculators. The production capacity is 35,000 calculators, and the company is currently operating at 80% capacity. Variable manufacturing costs are $12 per unit. Fixed manufacturing costs are $420,000. The calculators are normally sold to Computek Ltd at $28 each. Bronson has an offer from Office Equipment Ltd (a foreign wholesaler) to purchase an additional 6,000 calculators at $14 per unit. The delivery costs for this order would be $13,000.

Problem 1: What is the available capacity of Park Ltd before accepting this order?

a. Cannot be determined with the data provided.
b. 35 000 units.
c. 28 000 units.
d. 7 000 units.
e. 6 000 units.

Reference no: EM132838418

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