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Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity Sales (323,400 units) Cost of goods sold Gross profit Operating expenses Net income (a) Revenues Cost of goods sold was 60% variable and 40% fixed; operating expenses were 70% variable and 30% fixed In September, Moonbeam 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. Cost of goods sold $4,380,000 2,597,980 Operating expenses Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, eg 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 eg. -45 or parentheses e.g. (45)) Net Income 1,782,020 840,840 $ $941,180 $ Reject Order 0 0 0 S Accept Order 157.440 $ $ Net Income Increase (Decrease) 157,440
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