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Vaughn Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant
Vaughn 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: Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. In October, Vaughn Company receives a special order for 4,300 fireplaces at \$62 each from Langston's Landscape Company. Acceptance of the order would result in an additional $6,700 of shipping costs but no increase in fixed operating expenses. Your answer has been saved. See score details after the due date. 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). Your answer has been saved. See score details after the due date. Should Vaughn Company accept the special order? Why or why not? , its income is with this order. Attempts: 1 of 1 used Before Vaughn could give Langston's Landscape Company an answer, the company received a special order from Benson Building \& Supply for 13,700 fireplaces. Benson is willing to pay $65 per fireplace but it wants a special design imbedded into the fireplace that increases cost of goods sold by $57,540. The special design also requires the purchase of a part that costs $5,000 and will have no future use for Vaughn Company. Benson Building \& Supply will pick up the fireplaces so no shipping costs are involved. Due to capacity limitations, Vaughn cannot accept both special orders. Which order should be accepted? Document your decision by preparing an incremental analysis for Benson's order. (Enter loss using either a negative sign preceding the number e.g. 2,945 or parentheses e.g. (2,945)
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