E7-2B Pocket Company manufactures toasters. For the first 8 months of 2014, the com- pany reported the following operating results while operating at 75% of plant capacity. Sales (400,000 units) Cost of goods sold Gross profit Operating expenses Net income $4,000,000 2,800,000 1,200,000 900,000 $ 300,000 Cost of goods sold was 75% variable and 25% fixed. Operating expenses were 70% vari- able and 30% fixed. In September, Pocket Company receives a special order for 60,000 toasters at $8 each from Sparkle Company of Carson City. Acceptance of the order would result in $10,000 of shipping costs but no increase in fixed operating expenses Instructions (a) Prepare an incremental analysis for the special order. b) Should Pocket Company accept the special order? Why or why not