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Oriole Company supplies schools with floor mats to use in physical education classes. Oriole has received a special order from a large school district
Oriole Company supplies schools with floor mats to use in physical education classes. Oriole has received a special order from a large school district to buy 528 mats at $45 each. Acceptance of the special order will not affect fixed costs but will result in $1,056 of shipping costs. For the first 6 months of 2022, the company reported the following operating results while operating at 80% capacity: Sales (88,000 units) $6,160,000 Cost of goods sold 3,696,000 Gross profit 2,464,000 Operating expenses 1,760,000 Net income $704,000 Cost of goods sold was 75% variable and 25% fixed; operating expenses were 70% variable and 30% fixed. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) $ Reject Order Accept Order Net Income Increase (Decrease) $ $ $ $
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