Dear

Please have look to the answers and confirm if all is correct / not with explanation

Challenge Exercise 7-1 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 (77,000 units) $6,930,000 Cost of goods sold 5,005,000 Gross profit 1,925,000 Operating expenses 770,000 Net income $1,155,000 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 3,900 fireplaces at $62 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. Prepare an incremental analysis for the special order. ( Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Net Income Reject order Accept order Increase (Decrease) Revenues $ $ 241800 $ 241800 Costs Cost of Goods Sold 202800 (202800) Operating Expenses 27300 (27300) Shipping Expenses 6,300 (6,300) Net Income $ 5400 $ 5400 Should Conklan Company accept the special order? Why or why not? Yes + higher $Before Conklan could give Langston's Landscape Company an answer, they received a special order from Benson Building St Supply for 13,800 replaces. Benson is willing to pay $65 per replace but they want a special design imbedded into the fireplace that increases cost of goods sold by $56,580. The special design also requires the purchase of a part that costs $4,700 and will have no future use for Conklan Company. Benson Building & Supply will pick up the replaces so no shipping costs are involved. Due to capacity limitations, Conklan cannot accept both special orders. which order should be accepted? Document your decision by preparing an incremental analysis for Benson's order. (Enter loss using either a negative sign preceding the number e.g. 4,945 or parentheses e.g. (2,945).) Net Ineome Reject order Aceept order Increase (Decrease) Revenues $ 0 $ 897000 $ 897000 Costs Cost of Goods Sold 0 774180 (774180) Operating EXPenses 0 96600 (96600) Unique part 0 4,700 (4,700) Net Income $ 0 $ 21520 $ 21520 Conklan should accept the order from Benson Building and Supply