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Crane Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of
Crane Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of plant capacity: Sales (630,000 units) $113,400,000 Cost of goods sold 68,040,000 Gross profit 45,360,000 Operating expenses 30,240,000 Net income $15,120.000 An analysis of costs and expenses reveals that variable cost of goods sold is $95 per unit and variable operating expenses are $35 per unit. In September, Crane Company receives a special order for 50,400 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $12,600 of shipping costs but no increase in fixed expenses. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45). Do not leave any field blank. Enter O for the amounts.) CRANE COMPANY Incremental Analysis Net Income Reject Order Accept Order Increase (Decrease) > > >
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