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Wildhorse Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of plant
Wildhorse 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 (650,000 units) $117,000,000 Cost of goods sold 70,200,000 Gross profit 46,800,000 Operating expenses 31,200,000 Net income $15,600,000 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, Wildhorse Company receives a special order for 52,000 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $13,000 of shipping costs but no increase in fixed expenses. 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 for the amounts.) WILDHORSE COMPANY Incremental Analysis WILDHORSE COMPANY Incremental Analysis Net Income Increase (Decrease) Reject Order Accept Order $ $ $ $ Should Wildhorse Company accept the special order? accept the special order. Wildhorse Company should should not
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