Business, 28.07.2021 01:00 deeoki3384

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 (349,200 units) $4,373,000
Cost of goods sold 2,591,000
Gross profit 1,782,000
Operating expenses 839,700
Net income $942,300

Cost of goods sold was 73% variable and 27% fixed; operating expenses were 83% variable and 17% fixed.

In September, Moonbeam Company receives a special order for 23,200 toasters at $7.75 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.

Required:
Prepare the incremental analysis for special order.

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Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the fol...

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