Current Attempt in Progress Pharoah Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (347,200 units) $4,380,000 Cost of goods sold 2,589,120 Gross profit 1,790,880 Operating expenses 837,620 Net income $953,260 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Pharoah receives a special order for 18,300 toasters at $7.67 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, eg. 15.25 and all other computations and final answers to the nearest whole dollar, e-g. 5,725. Enter negative amounts using either a negative sign preceding the number e g. -45 or parentheses e-g.(45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues $ $ $ Cost of goods sold Operating expenses Net income $ $ $ (b) Should Pharoah accept the special order? Pharoah Company the special order. Save for Later Attempts: 0 of 1 used Submit Answer Current Attempt in Progress Wildhorse Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. New Machine $25,200 Original purchase cost Accumulated depreciation Estimated annual operating costs Remaining useful life Current Machine $15,000 $5,900 $25,000 5 years $19,500 5 years If sold now, the current machine would have a salvage value of $8,100. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years. Prepare an incremental analysis to determine whether the current machine should be replaced. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number e g. -45 or parentheses eg. (45).) Retain Machine Replace Machine Net Income Increase (Decrease) $ $ Operating costs New machine cost Salvage value (old) Total $ The current machine should be Save for Later Attempts: 0 of 1 used Submit Answer Current Attempt in Progress Pharoah Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (347,200 units) $4,380,000 Cost of goods sold 2,589,120 Gross profit 1,790,880 Operating expenses 837,620 Net income $953,260 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Pharoah receives a special order for 18,300 toasters at $7.67 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, eg. 15.25 and all other computations and final answers to the nearest whole dollar, e-g. 5,725. Enter negative amounts using either a negative sign preceding the number e g. -45 or parentheses e-g.(45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues $ $ $ Cost of goods sold Operating expenses Net income $ $ $ (b) Should Pharoah accept the special order? Pharoah Company the special order. Save for Later Attempts: 0 of 1 used Submit Answer Current Attempt in Progress Wildhorse Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. New Machine $25,200 Original purchase cost Accumulated depreciation Estimated annual operating costs Remaining useful life Current Machine $15,000 $5,900 $25,000 5 years $19,500 5 years If sold now, the current machine would have a salvage value of $8,100. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years. Prepare an incremental analysis to determine whether the current machine should be replaced. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number e g. -45 or parentheses eg. (45).) Retain Machine Replace Machine Net Income Increase (Decrease) $ $ Operating costs New machine cost Salvage value (old) Total $ The current machine should be Save for Later Attempts: 0 of 1 used Submit