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Exercise 20-03 Your answer is partially correct. Try again. Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following
Exercise 20-03 Your answer is partially correct. Try again. Moonbeam 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 (358,400 units) $4,370,000 Cost of goods sold 2,600,960 Gross profit 1,769,040 Operating expenses 837,760 Net income $931,280 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 24,500 toasters at $7.68 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 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, e.g. 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) 188160 Revenues 188160 Cost of goods sold 124460 124460 > X Operating expenses 0 48915 48915 1 Net income 14785 14785
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