Question ABC Company supplies schools with floor mattresses to use in physical education classes ABC has received a special order from a large school district to buy 600 mats at $45 each Acceptance of the special order will not affect fixed costs but will result in $1,200 of shipping costs For the first 6 months of 2016, the company reported the following operating results while operating at 80 capacity Sales (100,000 units) $7,000,000 Cost of goods sold 4,200,000 Gross profit 2,800,000 Operating expenses 2,000,000 Net income $ 800,000 Cost of goods sold was 75 variable and 25 fixed operating expenses were 70 variable and 30 fixed Instructions (A) Prepare an incremental analysis for the special order (B) Should ABC Company accept the special order Justify your answer

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Question  ABC Company supplies schools with floor mattresses to use in physical education classes  ABC has received a special order from a large school district to buy 600 mats at $45 each  Acceptance of the special order will not affect fixed costs but will result in $1,200 of shipping costs  For the first 6 months of 2016, the company reported the following operating results while operating at 80  capacity  Sales (100,000 units) $7,000,000 Cost of goods sold 4,200,000 Gross profit 2,800,000 Operating expenses 2,000,000 Net income $ 800,000 Cost of goods sold was 75  variable and 25  fixed  operating expenses were 70  variable and 30  fixed  Instructions  (A) Prepare an incremental analysis for the special order  (B) Should ABC Company accept the special order  Justify your answer

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Question: ABC Company supplies schools with floor mattresses to use in physical education classes. ABC has received a special order from a large school district

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