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Chapter Twenty-Three Challenge Exercise 23-1 Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while
Chapter Twenty-Three Challenge Exercise 23-1 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 (75,000 units) $6,750,000 Cost of goods sold 4,875,000 Gross profit 1,875,000 Operating expenses 750.000 Net income $1 125,000 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 4,000 fireplaces at $62 each from Langston's Landscape Company. Acceptance of the order would result in an additional $7,000 of shipping costs but no increase in fixed operating expenses. Instructions (a) Prepare an incremental analysis for the special order
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