Goodfellow Company Had the Following Results of Operations for the Past

question 53

Essay

Goodfellow Company had the following results of operations for the past year:
Sales (8,000 units at $6.80) $ 54,400
Materials and direct labor (20,000)
Overhead (40% variable) (10,000)
Selling and administrative expenses (all fixed) (6,000)
Operating income $ 18,400
A foreign company (whose sales will not affect Goodfellow's regular sales) offers to buy 2,000 units at $5.00 per unit. In addition to variable manufacturing costs, there would be shipping costs of $1,200 in total on these units. Prepare an analysis of this additional business to show whether Goodfellow should take this order.

Understand the concept of variance and standard deviation as measures of risk.

Distinguish between different types of risks and their measurement.

Apply probability concepts to real-world economic scenarios.

Understand the implications of risk aversion on investment decision-making.

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Definitions:

Women's Era

A period during the late 19th and early 20th centuries characterized by significant advancements in women's rights, including suffrage and increased participation in public life.

Alfred T. Mahan

A United States naval officer and historian whose theories on the importance of sea power influenced naval strategies around the world in the late 19th and early 20th centuries.

Navy

A navy consists of the branch of a nation's armed forces principally designated for naval and amphibious warfare; namely, lake-borne, riverine, littoral, or ocean-borne combat operations and related functions.

Raw Materials

Unprocessed or minimally processed substances that are used to manufacture goods or products.