VERStoN BACK NOCT Your answer is partially correct. Try again. Moonbeam Company
ID: 2550012 • Letter: V
Question
VERStoN BACK NOCT Your answer is partially correct. Try again. Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,500 units) Cost of goods sold Gross profit Operating expenses Net income $4,371,000 2,590,000 1,781,000 839,900 $941,100 Cost of goods sold was 73% variable and 27% fixed; operating expenses were 83% variable and 17% fixed. In September, Moonbeam Company receives a special order for 18,600 toasters at $7.95 each from Luna Company of Cludad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs e.g. 15.2567 and all other computations and Prepare an incremental analysis for the special order. (Round computations for per unit cost to 4 decimal final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net Income Reject Accept Order 147870 Cost of goods sold OperatingExplanation / Answer
a.the following is the incremental analysis.
2nd part:
Moonbeam company should accept the special order.
note:
cost of goods sold = 2,590,000 * 73% =>$1890700 for 350,500 units.
=>$1890700 / 350,500 * 18,600 =>$100,334....(to nearest dollar) for 18,600 units
operating expenses = $839,900 *83% =>$697,117.for 350,500 units
=>$697117 / 350,500 * 18600 =>$36,994.........(for 18,600 units).
total operating expense = $36,994 + $3,000 shipping =>$39,994.
reject order accept order net income increase Revenues (18,600*$7.95) nil $147,870 $147870 cost of goods sold (see note) nil - $100,334 -$100,334 operating expenses (see note) nil -$36,994 -$39,994 net income nil $7542 $7542Related Questions
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