Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 (79,900 units) Cost of goods sold Gross proft Operating expenses Net income $7,111,100 5,093,625 2,017,475 799,000 $1,218,475 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 4,200 fireplaces at $61 each from Langston's Landscape Company. Acceptance of the order would result in an additional $7,600 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 eg. -2,945 or parentheses eg. (2,945).) Net Income Increase (Decrease) Reject order Accept order Revenues Costs Cost of Goods Sold Operating Expenses Shipping Expenses Net Income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started