Please help with the following question: SHOW HOW ANSWER WAS ACHIEVED<\/p>
<\/p>
E7-3<\/strong> Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity:<\/p> <\/p> Sales (350,000 units) $4,375,000<\/strong><\/p> Cost of goods sold 2,600,000<\/strong><\/p> Gross profit 1,775,000<\/strong><\/p> Operating expenses 840,000<\/strong><\/p> Net income $ 935,000<\/strong><\/p> <\/p> Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed.<\/p> In September, Moonbeam receives a special order for 15,000 toasters at $7.60 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs.<\/p> <\/p> INSTRUCTIONS:<\/p> a.create<\/strong> an incremental analysis for the special order.<\/p> a.<\/strong>Should Moonbeam accept the special order? Why or why not?<\/p>",
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