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Challenge Exercise 7-1 (Part Level Submission) Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results

Challenge Exercise 7-1 (Part Level Submission)

Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity:
Sales (80,300 units) $7,307,300
Cost of goods sold 5,219,500
Gross profit 2,087,800
Operating expenses 803,000
Net income $1,284,800
Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. In October, Conklan Company receives a special order for 3,800 fireplaces at $62 each from Langstons Landscape Company. Acceptance of the order would result in an additional $6,400 of shipping costs but no increase in fixed operating expenses.

(a)

Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
Reject order Accept order Net Income Increase (Decrease)
Revenues $

$

$

Costs
Cost of Goods Sold

Operating Expenses

Shipping Expenses

Net Income $

$

$

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