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Sandhill Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity:
Sandhill 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 (364.000 units) $4.373,000 Cost of goods sold 2.589,600 Gross profit 1.783.400 Operating expenses 841,750 Net income $941,650 Cost of goods sold was 70% variable and 30% fixed: operating expenses were 80% variable and 20% fixed. In September, Sandhill receives a special order for 23,200 toasters at $7.75 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 number e.g.-45 or parentheses eg.(45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues Cost of goods sold Operating expenses Net income Should Sandhill accept the special order? Sandhill Company the special order
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