Question 1:

Conklan 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 (68,300 units)		$6,283,600
Cost of goods sold		4,354,125
Gross profit		1,929,475
Operating expenses		683,000
Net income		$1,246,475

Cost 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 3,600 fireplaces at $61 each from Langstons Landscape Company. Acceptance of the order would result in an additional $6,700 of shipping costs but no increase in fixed operating expenses.

Question 1^^^^^

Question 2

Conklan 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 (68,300 units) $6,283,600 Cost of goods sold 4,354,125 Gross profit 1,929,475 Operating expenses 683,000 Net income $1,246,475 Cost 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 3,600 fireplaces at $61 each from Langston's Landscape Company. Acceptance of the order would result in an additional $6,70 of shipping costs but no increase in fixed operating expenses. (a) Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Reject order Accept order Net Income Increase (Decrease) Revenues $ $ Costs Cost of Goods Sold Operating Expenses Shipping Expenses Net Income Click if you would like to Show Work for this question: Open Show Work Challenge Exercise 7-1 (Part Level Submission) Conklan 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 (75,800 units) Cost of goods sold Gross profit Operating expenses $6,746,200 5,021,750 1,724,450 758,000 $966,450 Net income Cost 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 4,100 fireplaces at $63 each from Langston's Landscape Company. Acceptance costs but no increase in fixed operating expenses. the order would result in an additional $6,300 of shipping (a) Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Reject order Accept order Net Income Increase (Decrease) Revenues $ S Costs Cost of Goods Sold Operating Expenses Shipping Expenses Net Income $ Click if you would like to Show Work for this question: Open Show Work