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Before Crane could give Langston' Landscape Company an answer, the company received a special order from Benson Building & Supply for 13,900 fireplaces. Benson is
Before Crane could give Langston' Landscape Company an answer, the company received a special order
from Benson Building & Supply for 13,900 fireplaces. Benson is willing to pay $65 per fireplace but it wants
a special design imbedded into the fireplace that increases cost of goods sold by $63,940. The special
design also requires the purchase of a part that costs $4,900 and will have no future use for Crane
Company. Benson Building & Supply will pick up the fireplaces so no shipping costs are involved. Due to
capacity limitations. Crane cannot accept both special orders. Which order should be accepted? Document
your decision by preparing an incremental analysis for Benson's order. (Enter loss using either a negative
sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
Reject order
Accept order
Net Income
Increase (Decrease)
Revenues
Costs
Cost of
Goods Sold
Operating
Expenses
Unique
part
Net
Income
Crane should accept the order from
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