Question
Gregg Company supplies schools with floor mattresses to use in physical education classes. Gregg has received a special order from a large school district
Gregg Company supplies schools with floor mattresses to use in physical education classes. Gregg has received a special order from a large school district to buy 600 mats at $45 each. Acceptance of the special order will not affect fixed costs but will result in $1,200 of shipping costs. For the first 6 months of 2022, the company reported the following operating results while operating at 80% capacity: Sales (100,000 units) Cost of goods sold Gross profit Operating expenses Net income $7,000,000 4.200.000 2,800,000 2,000,000 $ 800,000 Cost of goods sold was 75% variable and 25% fixed; operating expenses were 70% variable and 30% fixed. Instructions (a) Prepare an incremental analysis for the special order Once you have completed an incremental analysis, on the document that the
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