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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
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 (75,800 units) $6,746,200 Cost of goods sold 5,021,750 Gross profit 1,724,450 Operating expenses 758,000 Net income $966,450 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 4,100 fireplaces at $63 each from Langston's Landscape Company. Acceptance of the order would result in an additional $6,300 of shipping costs but no increase in fixed operating expenses.
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