60.1K

Verified Solution

Link Copied!

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: $4,372,000 2,597,760 Sales (369,600 units) Cost of goods sold Gross profit Operating expenses 1,774,240 836,220 Net income $938,020 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. arez. In September, Moonbeam re ves a special order for 21,800 toasters at $7.80 ch fror una Company Ciudad 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).) (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 $ i 203595 203595 Cost of goods sold i (120295) (120295) Operating expenses i (47345) (47345) Net income $ i $ 35955 $ 35955

Answer & Explanation Solved by verified expert

See Answer