Question
Oriole Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant
Oriole Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (369,600 units) $4,372,000 Cost of goods sold 2,592,480 Gross profit 1,779,520 Operating expenses 836,220 Net income $943,300 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Oriole receives a special order for 24,500 toasters at $8.31 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. Prepare an incremental analysis for the special
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