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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

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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 Sales (350,500 units) $4,372,000 Cost of goods sold 2,599,100 Gross profit 1,772,900 839,200 $933,700 Net income Cost of goods sold was 68% variable and 32% fixed; operating expenses were 73% variable and 27% fixed. In September, Leno Company receives a special order for 17,400 toasters at $8.05 each from Centro Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,040 of shipping costs but no increase in fixed operating expenses. Reject Order Accept Order Net Income Increase (Decrease) Cost of goods sold Operating expenses Net income SHOW SOLUTION SHOW ANSWER Should Leno Company accept the special order

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