Oriole 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)		$4,372,000
Cost of goods sold		2,608,760
Gross profit		1,763,240
Operating expenses		840,840
Net income		$922,400

Cost of goods sold was 60% variable and 40% fixed; operating expenses were 70% variable and 30% fixed. In September, Oriole receives a special order for 24,200 toasters at $7.63 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 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 e.g. -45 or parentheses e.g. (45).)

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

(b) Should Oriole accept the special order?

Oriole Company

should accept should reject

the special order.