Question $9$ of $18$

Wildhorse Company manufactures toasters. For the first $8$ months of $2022,$ the company reported the following operating results

while operating at $75\%$ of plant capacity:

Cost of goods sold was $70\%$ variable and $30\%$ fixed; operating expenses were $80\%$ variable and $20\%$ fixed.

In September, Wildhorse receives a special order for $20,200$ toasters at $$8\mathrm{.}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, e$.$g$.15\mathrm{.}25$ 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$.(45).)$

Net Income

Reject

Accept

Increase

$($Decrease$)$

Question $9$ of $18$

number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

$($b$)$

Should Wildhorse accept the special order?

Wildhorse Company

the special order.