Pina Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity:

sales (349,400 units) $4,372,00

cost of goods sold 2,595,000

gross profit 1,777,000

operating expenses 840,000

net income $937,000

Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed.

In September, Pina receives a special order for 17,500 toasters at $7.90 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.

Prepare an incremental analysis for the special order. (Round computations for per unit cost to 4 decimal places, e.g. 15.2500 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Pina Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (349,400 units) $4,372,000 Cost of goods sold 2,595,000 Gross profit 1,777,000 Operating expenses 840,000 Net income $937,000 Cost of goods sold was 70% variable and 30% fixed: operating expenses were 80% variable and 20% fixed. In September, Pina receives a special order for 17.500 toasters at $7.90 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 4 decimal places, e.g. 15.2500 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Reject Accept Increase Order Order (Decrease) Revenues 138250 138250 Cost of goods sold 0 90650 (90650 1000 Operating expenses 0 33600 (33600) Net income 14000 14000