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2 of 6 < > View Policies Current Attempt in Progress -/15 Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company
2 of 6 < > View Policies Current Attempt in Progress -/15 Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (347,200 units) $4,380,000 Cost of goods sold 2,589,120 Gross profit 1,790,880 Operating expenses 837,620 Net income $953,260 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 20,200 toasters at $8.09 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increas fixed costs. Net Income Increase (Decrease) (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and 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).) Revenues Cost of Reject Order goods sold Operating expenses Net income +A 0 +A Accept Order 0 $ SA SA +A (b) Should Moonbeam accept the special order? Moonbeam Company should accept the special order
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