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Exercise 21-3 Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of
Exercise 21-3 Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (349,100 units) Cost of goods sold Gross profit $4,377,000 2,594,000 1,783,000 Operating expenses 839,400 $943,600 Net income Cost of goods sold was 67% variable and 33% fixed; operating expenses were 77% variable and 23% fixed. In September, Moonbeam Company receives a special order for 24,500 toasters at $8.38 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $2,900 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. 15.2567 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using elther a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Net Income Increase Accept Order Reject Order (Decrease) Revenues Cost of goods sold Operating expenses Net income Should Moonbeam Company accept the special order? B the special order. Moonbeam Company
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