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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?
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?
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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
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tom loper is an accounting major at a midwestern state university located approximately 60 miles from a major city.
Jan. 1 - Invested $100,000 cash to start the business. Prepare the cash, Accounts receivable, and accounts payable T accounts
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