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Wyco Company manufactures toasters. For the first 8 months of 2013, the company reported the following operating results while operating at 75% of plant capacity.
Wyco Company manufactures toasters. For the first 8 months of 2013, the company reported the following operating results while operating at 75% of plant capacity. Sales (400,000 units) $4,000,000 Cost of goods sold 2,400,000 Gross profit 1,600,000 Operating expenses 900,000 Net income $700,000 Cost of goods sold was 70% variable and 30% fixed. Operating expenses were also 60% variable and 40% fixed. In September, Wyco Company receives a special order for 40,000 toasters at $6.00 each from Salono Company of Mexico City. Acceptance of the order would result in $8,000 of shipping costs but no increase in fixed operating expenses. Instructions Complete the incremental analysis for the special order. (If an amount should be blank, enter a zero. All boxes must be filled to be correct. If amount decreases net income, use either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Enter all other amounts as positive amounts and subtract where necessary. Round computations of unit costs to 2 decimal places, e.g. 10.50. Round answers to 0 decimal places, e.g. 125.) Reject Order Accept Order Net Income Revenues Cost of goods sold Operating expense Net income Wyco Company should the special order. Click here if you would like to Show Work for this
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