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Pharoah Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity:

Pharoah 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 (375,200 units) Cost of goods sold Gross profit Operating expenses Net income (a) Revenues Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Pharoah receives a special order for 20,800 toasters at $7.87 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $2,900 of shipping costs but no increase in fixed costs. Cost of goods sold $4,378,000 Operating expenses 2,588,880 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).) Net income 1,789,120 839,510 $949,610 $ $ Reject Order (b) Should Pharoah accept the special order? $ $ Accept Order $ $ Net Income Increase (Decrease) MAY city
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Cost of eoods sold was 70x variable and 30 s foed operating expenses were 80s varisble and 200 foxed In Stptember, Praroah receives a special order for 20.800 toatters at $7.87 each trom Luna Compony of Ciudad Jaarez, Accegtance of the order would result in an additional $2.900 of shipgineconts but no incresse in fised costs (a) 5.725. Fiter nesulive emounts using either a neputive sigm proceding the number es -45 or porenthene es (45)) (b) Siould Fwarouh mceept the special order? Cost of eoods sold was 70x variable and 30 s foed operating expenses were 80s varisble and 200 foxed In Stptember, Praroah receives a special order for 20.800 toatters at $7.87 each trom Luna Compony of Ciudad Jaarez, Accegtance of the order would result in an additional $2.900 of shipgineconts but no incresse in fised costs (a) 5.725. Fiter nesulive emounts using either a neputive sigm proceding the number es -45 or porenthene es (45)) (b) Siould Fwarouh mceept the special order

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