BACK xercise 20-3 oonbeam Company manufactures Sales (350,500 units) $4,375,000

Question

BACK xercise 20-3 oonbeam Company manufactures Sales (350,500 units) $4,375,000 Cost of goods sold Gross proft toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: 2,607,000 1,768,000 840,000 $928,000 Operating expenses Net income Cost of goods sold was 65% variable and 3S% fixed; operating expenses were 75% variable and 25% nied. in Septembet, Moonbeam Company receives a special order for 23,100 toasters at $7.85 each from Luna Company of Cludad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs a analysis for the special order. (Round computations for per unit cost to 4 decimal places, e.g.15.2500 and all other whole dollar,o.g.5,725. Enter negative amounts using either a negative sign preceding the number e.g. 45 or parentheses e.g. (45 computations and final answers to the neares Net Income Reject Order Accept Order (Decrease) Revenues Cost of goods sold Operating expenses Net income x Polticy 1 .2000-2018 3ohn Wiley &Sons; Inc.All Rights Reserved. A Division of John.Wey & Sions.I Version 4.24.5

Explanation / Answer

Prepare incremental analysis :

Reject order Accept order Net income increase (decrease) Revenue 0 181335 181335 Cost of goods sold 0 (111680.76) (111680.76) Operating expense 0 (44620.68) (44620.68) Net income 0 25034 25034

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