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Cullumber Company supplies schools with floor mats to use in physical education classes. Cullumber has received a special order from a large school district to
Cullumber Company supplies schools with floor mats to use in physical education classes. Cullumber has received a special order from a large school district to buy 768 mats at $45 each. Acceptance of the special order will not affect fixed costs but will result in $1.536 of shipping costs. For the first 6 months of 2022, the company reported the following operating results while operating at 80% capacity: Sales (128,000 units) $8,960,000 Cost of goods sold 5,376,000 Gross profit 3,584,000 Operating expenses 2,560,000 Net income $1,024,000 Cost of goods sold was 75% variable and 25% fixed; operating expenses were 70% variable and 30% fixed. Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) Sales Price Cost of Goods Sold # Operating Expense: Net Income/(Loss): $ Reject Order Accept Order $ Net Income Increase (Decrease)
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