Blossom Industries manufactures a component used by car manufacturers, Blossom can produce 100.000 components per...
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Blossom Industries manufactures a component used by car manufacturers, Blossom can produce 100.000 components per year foreign car manufacturer has approached Blossom with an offer to purchase 121000 components at price of Seper unit. Blossoms results for last year are as follows: Sales (901000 at $8) $7208000 Variable costs 2703000 Contribution margin 4505000 Fixed costs 2351000 Operating income $2154000 If Blossom accepts the offer, it will only be able to sell 881000 units at the regular price due to its capacity constraints. What will Blossoms total operating income be next year if it accepts the offer? $2417000 $2659000 $2720000 $4768000
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