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Parker Manufacturers produces can openers. For the first six months of 2022, the company reported the following operating results while operating at 80% of plant
Parker Manufacturers produces can openers. For the first six months of 2022, the company reported the following operating results while operating at 80% of plant capacity. Sales (500,000 units) $4,000,000 Cost of goods sold 2,500,000 Gross profit 1,500,000 Operating expenses 1,000,000 Net income $ 500,000 Cost of goods sold was 70% variable and 30% fixed. Operating expenses were 70% variable and 30% fixed. In September 2022, Parker Manufacturers receives a special order for 15,000 can openers at $7.50 from a foreign company. Acceptance of the special order would result in $5,000 of shipping costs but no increase in fixed operating expenses. Instructions: Prepare an incremental analysis for the special order
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