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Question 3 of 3 View Policies < Current Attempt in Progress Ivanhoe Company manufactures toasters. For the first 8 months of 2022, the company
Question 3 of 3 View Policies < Current Attempt in Progress Ivanhoe Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (364,000 units) $4,374,000 Cost of goods sold 2,605,200 Gross profit 1,768,800 Operating expenses 841,750 Net income $927,050 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Ivanhoe receives a special order for 18,900 toasters at $7.64 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $2,900 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).) Revenues Cost of goods sold Operating expenses Net income (b) $ Reject Order 1.0 Accept Order $ $ $ $ Should Ivanhoe accept the special order? Ivanhoe Company the special order. Net Income Increase (Decrease)
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