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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

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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 plant capacity: Sales (590,000 units) $106,200,000 Cost of goods sold 63,720,000 Gross profit 42,480,000 Operating expenses 28,320,000 Net income $14,160,000 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 47,200 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $11,800 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 e.g. (45). Do not leave any field blank. Enter for the amounts.) CARLA VISTA COMPANY Incremental Analysis Net Income Increase (Decrease) Reject Order Accept Order $ $ $ V $ $ Save for Later Attempts: 0 of 1 used Submit Answer b (b)

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