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Exercise 182 (Part Level Submission) Carney Company manufactures cappuccino makers. For the first eight months of 2019, the company reported the following operating results while
Exercise 182 (Part Level Submission) Carney Company manufactures cappuccino makers. For the first eight months of 2019, the company reported the following operating results while operating at 80% of plant capacity: Sales (500,000 units) Cost of goods sold Gross profit Operating expenses Net income $90,000,000 54,000,000 36,000,000 24,000,000 $12,000,000 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, Carney Company receives a special order for 40,000 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $10,000 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 e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter o for the amounts.) CARNEY COMPANY Incremental Analysis Reject Order Accept Order Net Income Increase (Decrease) Click if you would like to Show Work for this question: Open Show Work
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