Question
Oriole Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of plant
Oriole Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of plant capacity:
An analysis of costs and expenses reveals that variable cost of goods sold is $95 per unit and variable operating expenses are $35 per unit.
In September, Oriole Company receives a special order for 35,200 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $8,800 of shipping costs but no increase in fixed expenses.
Prepare an incremental analysis for the special order.
Sales (440,000 units) Cost of goods sold Gross profit Operating expenses Net income $79,200,000 47,520,000 31,680,000 21,120,000 $10,560,000
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