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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
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 (69,900 units) | $6,360,900 | |
Cost of goods sold | 4,630,875 | |
Gross profit | 1,730,025 | |
Operating expenses | 699,000 | |
Net income | $1,031,025 |
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 $64 each from Langstons Landscape Company. Acceptance of the order would result in an additional $6,800 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).) Reject order Net Income Increase (Decrease) Accept order Revenues Costs Cost of Goods Sold Operating Expenses Shipping Expenses Net Income Save for Later $ [[ Attempts: 0 of 2 used SubmitStep by Step Solution
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