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Green Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity.
Green Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity. Cost of goods sold was 80% variable and 20% fixed. Operating expenses were 70% variable and 30% fixed. In September, Green Company receives a special order for 60,000 toasters at $16.00 each from White Company. Acceptance of the order would result in $16,000 of shipping costs but no increase in fixed operating expenses. Required: a. Prepare an incremental analysis for the special order. b. Should Green Company accept the special order? Why
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