What will crane total operating income be next year

Assignment Help Accounting Basics
Reference no: EM133189363

Question - Crane Industries manufactures a component used by car manufacturers. Crane can produce 1004000 components per year. A foreign car manufacturer has approached Crane with an offer to purchase 122000 components at price of $6 per unit. Crane's results for last year are as follows:

Sales (902000 at $8) $7216000

Variable costs 2706000

Contribution margin 4510000

Fixed costs 2352000

Operating income $2158000

If Crane accepts the offer, it will only be able to sell 882000 units at the regular price due to its capacity constraints. What will Crane's total operating income be next year if it accepts the offer?

Reference no: EM133189363

Questions Cloud

Compare and contrast short- and long-term goals for company : Compare and contrast short- and long-term goals for a company. Give an example of each, and explain why they are important for performance
Discuss three inventory valuation methods : Discuss three inventory valuation methods that can be applied in terms of the International Financial Reporting Standards
What would the present value of the mines revenue : If in 2016 a 'mine' produced gold 100kt per annum for the first four years (from 2017-2020) What would the present value of the mines revenue
Estimate the preliminary loss for soap shop : 4. Estimate the preliminary loss for Soap Shop. Summarize the process used to arrive at your calculation
What will crane total operating income be next year : If Crane accepts offer, it will only be able to sell 882000 units at the regular price due to its capacity constraints. What will Crane total operating income
What is the value of this inheritance to lisa today : Lisa Anderson just learned that she received an inheritance from her grandmother. What is the value of this inheritance to Lisa today
Identify actions must be taken regarding dispute management : Identify the four actions that must be taken regarding dispute management and explain why this is necessary
What is the equipments residual income : Rich Ruhlman, the division's manager, has set a 15% required minimum rate of return. What is the equipments residual income
What is the correlation between the returns : Under the strategy, Arsenal (a PL football club) will generate a 35% return if it rains, what is the correlation between the returns

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much would the first year of a car depreciation expense

How much would the first year of a car depreciation expense be, if the cost basis of the car is $35000 and the salvage value is $5000?

  Regal bowling ball division

Should the order from the Regal Bowling Ball Division be accepted by the Bowling Ball Division? Why?

  Calculate the cross elasticity of demand for donuts

Suppose that the price of donuts is 60.50 and the local donut shop serves 800 donuts per day. Calculate the cross elasticity of demand for donuts

  Increase the risk of a loan

Some savings and investment choices have the potential for higher earnings. However, these may also be difficult to convert to cash when you need the funds. This problem refers to

  Create a scatterplot along with a correlation

Do the students' scores for the two exams tend to go together, so that those who do poorly on the midterm tend to do poorly on the final.

  What is the up-to-date ending cash balance

Flynn Company's monthly bank statement showed the ending balance of cash of $18,500. What is the up-to-date ending Cash balance

  Summarize the purpose of cash flows

Summarize the purpose of cash flows, including the meaning of the term cash in a statement of cash flows and what is included in a statement of cash flows

  Compute the net present value

Compute the net present value and determine if the investment should be accepted or rejected according to the net present value criterion

  What is the internet address of the corporation

Show the change in Retained Earnings for the 2most recent years. What was net income for each year? How much was paid out in dividends each year?

  Prepare entries for both years

The Very Poor Company is involved in making installment sales whose probability of collection is extremely low. Accordingly, it has elected to use the cost recovery method. Information regarding the years 19A and 19B.

  Five used vans would cost a total of 74300 to purchase and

tom loper is an accounting major at a midwestern state university located approximately 60 miles from a major city.

  Prepare the cash accounts receivable and accounts payable

Jan. 1 - Invested $100,000 cash to start the business. Prepare the cash, Accounts receivable, and accounts payable T accounts

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!

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