Carney Company manufactures cappuccino makers. For the first eight months of 2016, the company reported the following operating results while operating at 80% of plant capacity:

Sales (500,000 units)		$90,000,000
Cost of goods sold		54,000,000
Gross profit		36,000,000
Operating expenses		24,000,000
Net income		$12,000,000

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, Carney Company receives a special order for 40,000 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $10,000 of shipping costs but no increase in fixed expenses.

(a)

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Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter 0 for the amounts.)

CARNEY COMPANY Incremental Analysis
		Reject Order		Accept Order		Net Income Increase (Decrease)
Cost of Goods SoldNet Income / (Loss)RevenuesOperating ExpenseSales Price		$		$		$
RevenuesOperating ExpenseSales PriceNet Income / (Loss)Cost of Goods Sold
Sales PriceRevenuesCost of Goods SoldNet Income / (Loss)Operating Expense
RevenuesCost of Goods SoldOperating ExpenseSales PriceNet Income / (Loss)		$		$		$