Question
Sunland Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of plant
Sunland 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 (470,000 units) $84,600,000 Cost of goods sold 50,760,000 Gross profit 33,840,000 Operating expenses 22,560,000 Net income $11,280,000 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, Sunland Company receives a special order for 37,600 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $9,400 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 0 for the amounts.) SUNLAND COMPANY Incremental Analysis Reject Order Accept Order Net Income Increase (Decrease) select an item $enter a dollar amount $enter a dollar amount $enter a dollar amount select an item enter a dollar amount enter a dollar amount enter a dollar amount select an item enter a dollar amount enter a dollar amount enter a dollar amount select a closing name $enter a total amount $enter a total amount $enter a total amount Attempts: 0 of 1 used (b)
Current Attempt in Progress Sunland 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 (470.000 units) Cost of goods sold $84,600,000 50,760,000 Gross profit 33,840.000 22,560,000 Operating expenses Net income $11,280,000 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, Sunland Company receives a special order for 37,600 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $9.400 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 eg. -45 or parentheses e.g. (45). Do not leave any field blank. Enter for the amounts.) SUNLAND COMPANY Incremental Analysis Reject Order Accept Order Net Income Increase (Decrease) > $ $ $ $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started