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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 (349,500 units) $4,377,000 Cost of goods sold Gross profit Operating expensesT0S Net income 2,591,000 1,786,000 840,300 $945,700 Cost of goods sold was 77% variable and 23% fixed; operating expenses were 87% variable and 13% fixed. In September, Monbeam Company receives a special order for 21,600 toasters at s8.12 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 elther a negative slgn 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 731061 Net income
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