Variations Company Had the Following Results of Operations for the Past

question 69

Essay

Variations Company had the following results of operations for the past year:
$$\begin{array} { | l | r | } \hline \text { Sales } ( 8,000 \text { units at } \$ 7.00 ) & \$ 56,000 \\\hline \text { Variable manufacturing cost: } & ( 30,000 ) \\\hline \text { Fixed manufacturing costs } & ( 6,000 ) \\\hline \text { Fixed selling and administrative expenses } & \underline{( 4,500 )} \\\hline \text { Operating income } &\underline{ \$ 15,500} \\\hline\end{array}$$ 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:

Bicultural Identity Formation

The process through which individuals who are exposed to two cultures develop a sense of identity that integrates aspects of both cultures.

Ethnocentric

Having the belief that one's own ethnic group or culture is superior to others.

Ethnocentrism

Ethnocentrism is the act of judging another culture solely by the values and standards of one's own culture, often leading to misunderstanding and biases.

Real Nature

The essential qualities or characteristics of something or someone, often considered inherent and authentic.