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Camino Company manufactures designer to-go coffee cups . Each line of coffee cups is endorsed by a high- e celebrity and designed with special elements

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Camino Company manufactures designer to-go coffee cups . Each line of coffee cups is endorsed by a high- e celebrity and designed with special elements selected by the celebrity. During the most recent year, Camino Company had the following operating results wh capacity Sales revenue Cost of goods sold S 1,904,000 728,875 Gross profit Operating expenses S 1,175,125 59,500 Net operating income 1,15,625 Camino's cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer from a professional wrestling association to design a coffee cup endorsed by its biggest star and produce 18,000 cups for $10 each (total $180,000). These cups would be sold at wrestling matches throughout the United States. Acceptance of the order would require a $54,000 endorsement fee to the wrestling star, but no other increases in fixed operating expenses Required: 1. Complete the incremental analysis of the special order in the table provided below Per cup Total 10.00 180,000 Incremental Revenue Less: Incremental Costs Variable COGS Variable Operating Expenses Endorsement Fee Incremental Profit 4.90 0.40 3.00 1.70 S 30,600 88,200 7,200 54,000

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