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Your answer is partially correct. Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating
Your answer is partially correct. Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,000 units) $4,375,000 Cost of goods sold 2,600,000 Gross profit 1,775,000 Operating expenses 840,000 Net income $935,000 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 15,000 toasters at $7.60 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. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Revenues Cost of goods sold Operating expenses Net income Reject Order (b) Should Moonbeam accept the special order? LA LA Moonbeam Company should accept the special order. Accept Order 114000 -81150 -33000 +A Net Income Increase (Decrease) 114000 -81150 -33000 228150 228150
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