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Carney Company manufactures cappuccino makers. For the first eight months of 2016, the company reported the following operating results while operating at 80% of plant
Carney Company manufactures cappuccino makers. For the first eight months of 2016, the company reported the following operating results while operating at 80% of plant capacity: Sales (500,000 units) $90,000,000 Cost of goods sold 54,000,000 Gross profit 36,000,000 Operating expenses 24,000,000 Net income $12,000,000 An analysis of costs and expenses reveals that variable cost of goods sold is 595 per unit and variable operating expenses are $35 per unit. In September, Carney Company receives a special order for 40,000 machines at 5135 each from a major coffee shop franchise. Acceptance of the order would result in $10,000 of shipping costs but no increase in fixed expenses. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either amounts.) negative sign preceding the number e.g. -45 or parentheses c.g. (45). Do not leave any field blank. Enter o for the CARNEY COMPANY Incremental Analysis Reject Order Accept Order Net Income Increase (Decrease) $ #
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