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Question 1 Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of
Question 1 Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity Sales (336,000 units) Cost of goods sold Gross profit Operating expenses Net income $4,372,000 2,596,800 1,775,200 840,000 $935,200 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed In September, Moonbeam 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 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 Increase (Decrease) Reject Order Accept Order Revenues Cost of goods sold Operating expenses Net income
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