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Sheridan Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of
Sheridan Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of plant capacity: Sales (460,000 units) $82,800,000 Cost of goods sold 49,680,000 Gross profit 33,120,000 Operating expenses 22,080,000 Net income $11,040,000 An analysis of costs and expenses reveals that variable cost of goods sold is $95 per unit and variable operating expenses are $35 per unit. In September, Sheridan Company receives a special order for 36,800 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $9,200 of shipping costs but no increase in fixed expenses. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter O for the amounts.) C M
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