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Question 4 (20 marks) - Incremental Analysis ABC Company manufactures coffee tables. For the first eight months of 2020, the company reported the following operating

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Question 4 (20 marks) - Incremental Analysis ABC Company manufactures coffee tables. For the first eight months of 2020, the company reported the following operating results while operating at 80% of plant capacity: Foot 3 Sales (250,000 units) Cost of goods sold Gross profit Operating expenses Net income $85,000,000 52.000.000 28,000,000 8.000.000 $20.000.000 Head An analysis of costs and expenses reveals that variable cost of goods sold is $180 per unit and variable operating expenses are $20 per unit. In September, ABC Company receives a special order for 45,000 machines at $200 each from a major cotton shop trarichise. Acceptance of the order would result in $22,500 of shipping costs but no increase in fixed expenses Instructions (a) Prepare an incremental analysis for the special order. (10 marks) Instructions (a) Prepare an incremental analysis for the special order. (10 marks) (b) Should Abc Company accept the special order? Justify your answer. (3 marks) 1 d Should ABC Company accept the special order it ABC Company receives a special order for 45,000 muchlies at $230 per unit? Justify your answer. [7 marks)

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