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Exercise 7-3 (Video) Moonbeam Company manufactures toasters. For the firs nonths of 2020, the company reported the following operating results while operating at 75% of

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Exercise 7-3 (Video) Moonbeam Company manufactures toasters. For the firs nonths of 2020, the company reported the following operating results while operating at 75% of plan capacity: Sales (358,400 units) $4,377,000 Cost of goods sold 2,590,720 Gross profit 1,786,280 Operating expenses 837,760 Net income $948,520 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam 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. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 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 (b) Should Moonbeam accept the special order? Moonbeam Company the special order. LINK TO TEXT

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