Sheridan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the...

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Sheridan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity: Sales (82,300 units) $7,571,600 Cost of goods sold 5.246.625 Gross profit 2,324,975 Operating expenses 823,000 Net income $1.501,975 Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. In October, Sheridan Company receives a special order for 3,600 fireplaces at $61 each from Langston's Landscape Company. Acceptance of the order would result in an additional $7,100 of shipping costs but no increase in fixed operating expenses. (a) Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Reject order Accept order Revenues 0 219600 Costs Cost of 0 Goods Sold Operating 0 Expenses Shipping 0 Expenses Net $ 0 $ Income eTextbook and Media -7100 $ Net Income Increase (Decre Save for Later Last saved 1 second ago. Attempts: 0 of 2 used Submit Answer Saved work will be auto-submitted on the due date. Auto-submission can take up to 10 minutes. Sheridan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity: Sales (82,300 units) $7,571,600 Cost of goods sold 5.246.625 Gross profit 2,324,975 Operating expenses 823,000 Net income $1.501,975 Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. In October, Sheridan Company receives a special order for 3,600 fireplaces at $61 each from Langston's Landscape Company. Acceptance of the order would result in an additional $7,100 of shipping costs but no increase in fixed operating expenses. (a) Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Reject order Accept order Revenues 0 219600 Costs Cost of 0 Goods Sold Operating 0 Expenses Shipping 0 Expenses Net $ 0 $ Income eTextbook and Media -7100 $ Net Income Increase (Decre Save for Later Last saved 1 second ago. Attempts: 0 of 2 used Submit Answer Saved work will be auto-submitted on the due date. Auto-submission can take up to 10 minutes.

Answer rating: 100% (QA)

To prepare an incremental analysis for the special order we need to compare the financial impact of ... View the full answer