Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the...
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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 (323,400 units)
$4,372,000
Cost of goods sold
2,608,760
Gross profit
1,763,240
Operating expenses
840,840
Net income
$922,400
Cost of goods sold was 60% variable and 40% fixed; operating expenses were 70% variable and 30% fixed. In September, Moonbeam receives a special order for 24,200 toasters at $7.63 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs.
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 (323,400 units) $4,372,000 Cost of goods sold 2,608,760 Gross profit 1,763,240 Operating expenses 840,840 Net income $922,400 Cost of goods sold was 60% variable and 40% fixed; operating expenses were 70% variable and 30% fixed. In September, Moonbeam receives a special order for 24,200 toasters at $7.63 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 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).) Reject Order Accept Order Net Income Increase (Decrease) Revenues 184,646 184,646 Cost of goods sold o 117,128 117,128 Operating expenses 47,144 47,144 Net income 20,374 20,374
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