Variations Company Had the Following Results of Operations for the Past

question 37

Essay

Variations Company had the following results of operations for the past year: A foreign company (whose sales will not affect Variations' regular sales)offers to buy 700 units at $4.00 per unit.In addition to variable manufacturing costs,there would be an export cost of $0.30 per unit.Prepare an analysis of this additional business to show whether Variations should take this order.

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Definitions:

Unrestricted Submarine Warfare

A type of naval warfare in which submarines attack merchant ships without warning, famously used by Germany during both World Wars.

Zimmermann Telegram

A secret communication sent by Germany proposing a military alliance with Mexico in the event of the United States entering World War I against Germany, which helped sway US public opinion towards war.

Russian Army

is the land-based military force of the Russian Federation, inheriting the traditions and structure from the Soviet Union.

German Invasion

Refers to military incursions or attacks by Germany, especially notable in World War I and World War II contexts.