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Blossom Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant
Blossom Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (341,600 units) $4,370,000 Cost of goods sold 2,591,280 Gross profit 1,778,720 Operating expenses 836.920 Net income $941,800 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Blossom receives a special order for 15,000 toasters at $7.50 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $2,900 of shipping costs but no increase in fixed costs.
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