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Carla Vista Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of

Carla Vista 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 (480,000 units) $86,400,000 Cost of goods sold 51,840,000 Gross profit 34,560,000 Operating expenses 23,040,000 Net income $11,520,000 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, Carla Vista Company receives a special order for 38,400 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $9,600 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 eg -45 or parentheses eg. (45). Do not leave any field blank. Enter O for the amounts.) CARLA VISTA COMPANY Incremental Analysis Reject Order Accept Order Net Income Increase (Decrease) $ $

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