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Bramble Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity:

Bramble Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity:

Sales (336,000 units) $4,375,000
Cost of goods sold 2,596,800
Gross profit 1,778,200
Operating expenses 840,000
Net income $938,200

Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Bramble receives a special order for 18,500 toasters at $8.03 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Reject Order Accept Order Net Income Increase (Decrease)

Revenues

$Enter a dollar amount $Enter a dollar amount $Enter a dollar amount

Cost of goods sold

Enter a dollar amount Enter a dollar amount Enter a dollar amount

Operating expenses

Enter a dollar amount Enter a dollar amount Enter a dollar amount

Net income

$Enter a total amount for this column $Enter a total amount for this column $Enter a total amount for this column

(b) Should Bramble accept the special order?

Bramble Company Select an option should acceptshould reject the special order.

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