Question
Exercise 20-3 (Part Level Submission) Leno Company manufactures toasters. For the first 8 months of 2014, the company reported the following operating results while operating
Exercise 20-3 (Part Level Submission) 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 (350,300 units) $4,381,500 Cost of goods sold 2,592,000 Gross profit 1,789,500 Operating expenses 839,400 Net income $950,100 Cost of goods sold was 75% variable and 25% fixed; operating expenses were 80% variable and 20% fixed. In September, Leno Company receives a special order for 19,200 toasters at $8.1 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. Collapse question part (a) 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 $ $ $ Cost of goods sold Operating expenses Net income $ $ $
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