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PE 2 0 - 1 Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2 0 2 0 , the company reported the

PE 20-1Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity:Sales (75,000 units)$6,750,000Cost of goods sold4,875,000Gross profit1,875,000Operating expenses750,000Net income$1,125,000Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed.In October, Conklan Company receives a special order for 4,000 fireplaces at $62 each from Langston's Landscape Company.Acceptance of the order would result in an additional $7,000 ofshipping costs but no increase in fixed operating expenses.(a) Prepare an incremental analysis for the special order.Sales PriceCalculate the Current Sales Price Per Unit:Cost of goods sold.Calculate the Variable Cost of Goods Sold per UnitOperating expensesCalculate the Variable Operating Expenses per Unit400062Reject orderAccept orderNet IncomeIncrease (Decrease)Revenues$O241,000CostsCost of Goods Sold0Operating Expenses0Shipping Expenses0Net IncomeSO

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