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Exercise 7-3 Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of
Exercise 7-3 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 (349,000 units) 54,370,000 Cost of goods sold Gross profit Operating expenses Net income 2,590,000 1,780,000 839,000 $941,000 Cost of goods sold was 65% variable and 35% fixed; operating expenses were 75% variable and 25% fixed In September, Moonbeam Company receives a special order for 15,000 toasters at $7.50 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional2,900 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. 15.2500 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) Cost of goods sold Operating expenses Net income
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