The Bruning Company has the following budgeted income statement for the month of May 2014.

Question 1 (9 marks):The Bruning Company has the following budgeted income statement for the month of May 2014.Sales (40,000 units) $2,000,000Cost of goods sold:Direct materials $300,000Direct labour 400,000Variable overhead 200,000Fixed overhead 600,000 1,500,000Gross profit margin 500,000Selling & administrative costs:Sales commissions (2% of sales 40,000Delivery costs 20,000Sales salaries 120,000Administrative salaries 100,000Office rental 70,000 350,000Operating income $ 150,000The plant has a maximum capacity of 50,000 units. A company salesperson has brought an offer from a new customer to purchase the product at a price of $35.00 per unit. The customer will pick up the order at Bruning’s factory.Required:1. Analyse the consequences for the company if they accepted the new order and:a. the customer wished to purchase 8,000 units only. [3 marks]b. the customer wished to purchase 14,000 units only. [4 marks]2. What qualitative factors should the company consider in making this type of decision?[2 marks]

Order a Unique Copy of this Paper

Essay Creek is an academic writing service provided to you by, a London-based company.

  • Experience
    Helping students successfully for 11 years.
  • Confidentiality & Security
    Be sure your information will be kept confidential due to our secure service.
  • Quality & Reliability
    8.5 out of 10 average quality score according to our customers' feedback. 97.45% of orders delivered on time.
  • Versatility
    478 active writers in 68 disciplines.
  • 100% money back guarantee
    You can always request a refund if you are not satisfied with the result.

Read more about us

Our team of writers is comprised of people with necessary academic writing skills and experience in various fields of study.

  • Skilled writers only
    We carefully choose writers to employ, paying attention to their skills and abilities.
  • Competence
    Your order will be assigned to a competent writer who specializes in your field of study.
  • In-depth knowledge
    Our writers know both peculiarities of academic writing and paper formatting rules.
  • Motivation
    We keep updated on results our writers show, motivating them to constantly improve their performance.

Read more about our writers

  • Testimonials
    Our clients' testimonials prove we're doing everything right.

Check for yourself

  • Sample essays
    The best way to understand how well our writers do their work is to view sample essays written by them.

View samples

  • Our Free Essay Tools
    Even more opportunities to improve your academic papers.

Bibliography Generator
Words to Pages Converter
Words to Minutes Converter
College GPA Calculator
Thesis statement generator