Challenge Exercise 7-1 Conklan Company manufactures outdcor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 90% of plant capacity: Sales (76,600 units) $6.970,600 Cast of goods sold 5,074,750 Gross profit 1,895 HSE Operating expenses 766.CO Net income $1,129,85C Cost of goods sold was 80% variable and 20% fixed; uperating expenses were 70% variable and 30% fixed. In October, Conklan Company receives a spedal order for 3,900 fireplaces at $64 cach from Langston's Landscape Company. Acceptance of the order would result in an additional $6,900 of shipping costs but no Increase in fixed operating expenses. Frepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses c.g. (2,945).) Net Income Reject order Accept order Increase (Decrease) Revenues Costs Cost of Goods Sald Operating Fxpenses Shoping Lxpenses Net Income Should Conklan Company accept the special order? Why or why not? its income is with this order Batore Conklan could give Langston's Landscape Company an answer, they received a special order from Benson Building Supaly for 14, 300 fireplaces. Benson is willing to pay $56 per fireplace but they want a special design Imbedded into the fireplace that increases cast at goods sold by $61,350. The special design also requires the purchase of a part that costs $4,700 and will have no future use for Conllan Company. Benson Building & Supply will pick up the fireplaces so no shipping costs are involved. Due to capacity limitations, Conklan cannot accept both speciel orders. Which order should be accepted? Document your decision by preparing an incremental analysis for Benson's order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2 (2,945).) Net Income Reject order Accept order Increase (Decrease) Ravenues s Casts Cost of Goods Sold Operating Expenses Unique part Net Income Conklan should accept the order from