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Concord Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of
Concord 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 (71,400 units) $6,568,800 Cost of goods sold 4,730,250 Gross profit 1,838,550 Operating expenses 714,000 Net income $1,124,550 Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. In October, Concord Company receives a special order for 3,900 fireplaces at $63 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. 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).) Revenues Costs Cost of Goods Sold Operating Expenses Shipping Expenses Net Income eTextbook and Media $ Reject order Accept order Net Income Increase (Decrease) Should Concord Company accept the special order? Why or why not? its income is with this order.
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