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Exercise 20-3 Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of

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Exercise 20-3 Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capac Sales (349,400 units) $4,372,000 Cost of goods sold Gross profit 2,595,000 1,777,000 840,000 Operating expenses Net income $937,000 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam Company receives a special order for 17,500 toasters at $7.90 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. 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. s or parentheses e.g. (45). Reject Order Accept Order Net Income Increase (Decrease) Revenues Cost of goods sold Operating expenses Net income

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