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Question 5 (10 Marks) The Caldwell Company manufactures cappuccino makers. For the first eight months of 2017 the company reported the following operating results while

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Question 5 (10 Marks) The Caldwell Company manufactures cappuccino makers. For the first eight months of 2017 the company reported the following operating results while operating at 80% of plant capacity Sales (500,000 units) $75,000.000 Cost of goods sold 45,000 000 Gross profit 30.000,000 Operating expenses 24,000.090 Net income $ 6.000 000 An analysis of costs and expenses reveals that variable cost of goods sold is $80 per unit and variable operating expenses are $30 per unit In September, Caldwell Company receives a special order for 25,000 machines at $120 each from a major coffee shop franchise. Acceptance of the order would result in $10,000 of shipping costs but no increase in fixed expenses. Instructions (a) Prepare an incremental analysis for the special order (b) Should Caldwell Company accept the special order? Justify your

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