Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the...
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Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,800 units) Cost of goods sold Gross profit Operating expenses Net income $4,370,000 2,604,000 1,766,000 839,400 $926,600 Cost of goods sold was 67% variable and 33% fixed; operating expenses were 77% variable and 23% fixed. In September, Moonbeam Company receives a special order for 24,500 toasters at $7.68 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs. Prepare an incremental analysis for the special order. (Round computations for per unit cost to 4 decimal places, e.g. 15.2500 and all other computations and final answers to the nearest whole dollar, eg.5,725. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues 188160$ Cost of goods sold Operating expenses Net income Should Moonbeam Company accept the special order? Moonbeam Company should accept the special order
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