13ASAP... Question based on modified problems 3.3 from the reference text [Flynn (2009)] from page 78 of the textbook:Polymerco, a North American manufacturer of specialty polymers, has the following highly condense income statement, given in the table below. There current salesare to North American customers only. The president casually mentions that it would be nice to have more offshore sales to diversity the company.Polymerco Income StatementThis year ($000)Last year ($000)Gross sales26683nil24762nilBad debtNet sales2668324762COGS22,24321,341Contribution margin44403421CM(%)16.6%13.8%SG&A2,1222,067Operating income23181354Other income and interest on long-term-60-50debtNet income22581304(a) if Polymerco's production is running at 84% capacity, what is the maximum discount in percentage that you can provide?Maximum discount=* %In this case, will you have a negative impact on the profitability of the business?+ X(b) if Polymerco's production is running at 100% capacity, how much percentage of discount can you provide without reducing the profitability?* %

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Answered: manufacturer of specialty polymers, has…

manufacturer of specialty polymers, has the following hig mers only. The president casually mentions that it would be ymerco Income Statement Thi (8000)

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter5: Income Statement: Reporting The Results Of Operating Activities

Section: Chapter Questions

Problem 31P

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