Question
Blossom Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of
Blossom Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of plant capacity: Sales (620,000 units) $111,600,000 Cost of goods sold 66,960,000 Gross profit 44,640,000 Operating expenses 29,760,000 Net income $14,880,000 An analysis of costs and expenses reveals that variable cost of goods sold is $95 per unit and variable operating expenses are $35 per unit. In September, Blossom Company receives a special order for 49,600 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $12,400 of shipping costs but no increase in fixed expenses. Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) eTextbook and Media SA $ BLOSSOM COMPANY Incremental Analysis Reject Order Should Blossom Company accept the special order? Blossom Company Accept Order $ accept the special order. $ $ Net Income Increase (Decrease)
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