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Exercise 20-3 Leno Company manufactures toasters. For the first 8 months of 2014, the company reported the following operating results while operating at 75% of
Exercise 20-3 Leno Company manufactures toasters. For the first 8 months of 2014, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,600 units) Cost of goods sold Gross profit Operating expenses Net income $4,376,100 2,605,000 1,771,100 840,000 $931,100 Cost of goods sold was 67% variable and 33% fixed; operating expenses were 72% variable and 28% fixed In September, Leno Company receives a special order for 17,700 toasters at $8.3 each from Centro Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed operating expenses. Your answer is partially correct. Try again Prepare an incremental analysis for the special order. (Round computations for per unit cost to 4 decimal places, e.g. 15.2500 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 Revenues 1469101 220927 Cost of goods sold 88114 88114
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