MoonbeamCompany manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity:

Sales (350,000units)$4,375,000Cost of goods sold2,600,000Gross profit1,775,000Operating expenses840,000Net income$935,000

Cost of goods sold was70% variable and30% fixed; operating expenses were80% variable and20% fixed.

In September,Moonbeamreceives a special order for15,000toasters at $7.6each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000of shipping costs but no increase in fixed costs.

(a)

Prepare an incremental analysis for the special order.

Net Income Reject Accept Increase Order Order (Decrease) Revenues $ $ $ Cost of goods sold Operating expenses Net income $ $ $