Question
Quick Company manufactures toasters. For the first eight months of 2020, the company reported the following operating results while operating at 75% of plant capacity:
Quick Company manufactures toasters. For the first eight months of 2020, the company reported the following operating results while operating at 75% of plant capacity:
Sales (350,100 units) | $4,376,500 | ||
Cost of goods sold | 2,495,500 | ||
Gross profit | 1,881,000 | ||
Operating expenses | 875,200 | ||
Net income | $1,005,800 |
The cost of goods sold was 72% variable and 28% fixed. Operating expenses were 72% variable and 28% fixed. In September, Quick Company receives a special order for 24,770 toasters at $8 each from Ortiz Company of Mexico City. Accepting the order would result in $2,920 of shipping costs but no increase in fixed operating expenses.
(a)
Prepare an incremental analysis for the special order. (Round intermediate calculations to 4 decimal places, e.g. 1.2579 and final answers to the nearest whole dollar, e.g. 5,275.)
Incremental revenue | $ | |||||
Incremental cost: | ||||||
Variable cost | $ | |||||
Shipping cost | ||||||
Fixed cost | ||||||
Incremental income / (loss) | $ |
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