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Question 7 of 13 - / 8 III View Policies Current Attempt in Progress Moonbeam Company manufactures toasters. For the first 8 months of 2020,
Question 7 of 13 - / 8 III 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 (336,000 units) $4,372,000 Cost of goods sold 2,596,800 Gross profit 1,775,200 Operating expenses 840,000 Net income $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. (a) 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 Prepare an incremental analysis for the special order. (Round computations for per unit cost to z decimal places, e.g. 15.25 ana 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 eg. -45 or parentheses e.g. (45).) Net Income Increase Reject Order Accept Order (Decrease) Revenues $ 0 $ 138,250 $ 138,250 Cost of goods sold 0 Operating expenses 0 Net income $ 0 $ $ (b) Should Moonbeam accept the special order? Moonbeam Company should accept v the special order
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