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I need help solving a) and b). The box in b) has options should aceept and should reject Blossom Company manufactures toasters. For the first
I need help solving a) and b). The box in b) has options "should aceept" and "should reject"
Blossom Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (323,400 units) $4,380,000 Cost of goods sold 2,597,980 Gross proft 1,782,020 Operating expenses 840,840 Net income $941,180 Cost of goods sold was 60% variable and 40% fixed; operating expenses were 70% variable and 30% fixed, In September, Blossom receives a special order for 20,500 toasters at $7.68 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 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 c.8. - 45 or parentheses e.3.(45).) Net Income Increase (Decrease) Reject Order Accept Order Revenues $ 4,380,000 Cost of goods sold Operating expenses $ Net Income $ (6) Should Blossom accept the special order? Blossom Company the special order Step by Step Solution
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