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Leno Company manufactures toasters. For the first 8 months of 2014, the company reported the following operating results while operating at 75% of plant capacity:
Leno Company manufactures toasters. For the first 8 months of 2014, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,600 units) $4,378,200 Cost of goods sold 2,599,800 Gross profit 1,778,400 Operating expenses 839,200 Net income $939,200 Cost of goods sold was 69% variable and 31% fixed; operating expenses were 74% variable and 26% fixed. In September, Leno Company receives a special order for 23,500 toasters at $8.49 each from Centro Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,010 of shipping costs but no increase in fixed operating expenses
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