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Carla Vista Company manufactures toasters. For the first 8 months of 2022 , the company reported the following operating results while operating at 75% of
Carla Vista Company manufactures toasters. For the first 8 months of 2022 , the company reported the following operating results while operating at 75% of plant capacity: Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Carla Vista receives a special order for 21,600 toasters at $8.12 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 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 eg. -45 or parentheses e.g. (45).) (b) Should Carla Vista accept the special order? Carla Vista Company the special order
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