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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 plant
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 (510.000 units) $91,800,000 Cost of goods sold 55,080,000 36,720,000 Gross profit Operating expenses Net income 24,480,000 $12,240,000 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 40.800 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $10,200 of shipping costs but no increase in fixed expenses. (a) 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.) BLOSSOM COMPANY Incremental Analysis Reject Order Net Income Increase (Decrease) Accept Order
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