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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 (400,000 units) $72.000,000 Cost of goods sold 43,200,000 Gross profit 28,800,000 Operating expenses 19,200,000 Net income $9.600,000 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 32,000 machines at $135 each from a major cotfee shop franchise. Acceptance of the order would result in $8,000 of shipping costs but no increase in fxed expenses, Prepare an incremental analysis for the special order. (Enter negotive amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45). Do not leave any field blank. Enter O for the amounts.) BLOSSOM COMPANY Incremental Analysis Net Income Reject Order Accept Order Increase (Decrease) Revenues %24 %24 Cost of Goods Sold Operating Expense : Net Income/ (Loss) : %24 24
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