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Sunland Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity:
Sunland Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (375,200 units) $4,373,000 Cost of goods sold 2,604,960 Gross profit 1,768,040 Operating expenses 839,510 Net income $928,530 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Sunland receives a special order for 20,800 toasters at $8.48 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs. computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Revenues Cost of goods sold Operating expenses Net income S Reject Order 0 0 0 0 +A Accept Order $ (b) Should Sunland accept the special order? Sunland Company should accept the special order. Net Income Increase (Decrease)
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