User Account

All Pages

What will crane total operating income be next year

Assignment Help Managerial Accounting
Reference no: EM133045638

Question - Crane Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has approached Crane and offered to purchase 242000 pounds of dog food for $1.40 per pound. Crane can produce 2004000 pounds of dog food per year, and its results for last year are as follows:

Sales (1822000 at $1.65) $3006300

Variable costs 1093200

Contribution margin 1913100

Fixed costs 792000

Operating income $1121100

If Crane accepts the offer, it will only be able to sell 1762000 pounds of dog food at the regular price due to its capacity constraints. What will Crane's total operating income be next year if it accepts the offer?

a. $1360900

b. $1312200

c. $1251700

d. $2043700

Reference no: EM133045638

Questions Cloud

Business and marketing strategies : Companies can use competitive intelligence to direct their business and marketing strategies and gain a competitive edge
Internal versus external secondary data sources : Differentiate between Internal versus External Secondary Data sources with its advantages and disadvantages.
Universal declaration of human rights : Identify three articles of the human rights declaration that correlate with constitutional principles in the US.
Intimacy and closeness of the relations : Life is a train that we ride and move us from the first station to our final destination.
What will crane total operating income be next year : If Crane accepts the offer, it will only be able to sell 1762000 pounds of dog food. What will Crane total operating income be next year
Explain normative theory : Explain Normative theory and its components based on ethical issues in the social media industry?
Joint ventures and foreign direct investment : What are the strength and weaknesses of Joint ventures and Foreign direct investment when entering a foreign market?
Key components necessary to be successful : 1. In the execution of effective corporate "strategy" what are the key components necessary to be successful?
Forms of communication in the workplace : In organizations, communication flows in many different directions, through many different channels. An effective supervisor understands what types of communica

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd