Question 1 View Policies Current Attempt in Progress 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 (347,200 units) $4,380.000 Cost of goods sold 2.589.120 Gross profit 1,790,880 Operating expenses 837.620 Net income $953.260 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 20.200 toasters at $8.09 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. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, eg. 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).) Reject Order Accept Order Net Income Increase (Decrease) Revenues Cost of goods sold Operating expenses Net income $ $ $ (b) Should Moonbeam accept the special order? Moonbeam Company the special order. e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Question 2 --/1 View Policies Current Attempt in Progress Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 61% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 29,100 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.45 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $40,400 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g.(45).) Make Buy Net Income Increase (Decrease) Direct materials $ $ ta Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total annual cost $ $ (b) Should Pottery Ranch buy the finials? Pottery Ranch should the finials. Would your answer be different in (b) if the productive capacity released by not making the finals could be used to produce income of $45.440? income would by $ e Textbook and Media Som for Attemnt of 3 used Submit Anmur
