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Exercise 20-03 Moonbearn Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of

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Exercise 20-03 Moonbearn Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (336,000 units) $4,375,000 Cost of goods sold 2,596,800 Gross profit 1,778,200 Operating expenses 840,000 Net Income $938,200 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 18,500 toasters at $8.03 each from Luna Company of Cludad Juarez. Acceptance of the order would result in an additional $3,000 or 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, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using e/ther a negative sign preceding the number 0.9. -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 Moonbeam accept the special order? Moonbeam Company the special order. Click If you would like to Show Work for this question: Open Show Work

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