Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the...

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Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity: Sales (79,900 units) $7,111,100 Cost of goods sold 5,093,625 Gross profit 2,017,475 Operating expenses 799,000 Net income $1,218,475 Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. In October, Conklan Company receives a special order for 4,200 fireplaces at $61 each from Langston's Landscape Company. Acceptance of the order would result in an additional $7,600 of shipping costs but no increase in fixed operating expenses. (a) v Your answer is correct. Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Net Income Reject order Accept order Increase (Decrease) Revenues $ 256200 256200 Costs Cost of Goods Sold 214200 i (214200) Operating Expenses 29400 (29400) Before Conklan could give Langston's Landscape Company an answer, they received a special order from Benson Building & Supply for 14,600 fireplaces. Benson is willing to pay $64 per fireplace but they want a special design imbedded into the fireplace that increases cost of goods sold by $68,620. The special design also requires the purchase of a part that costs $4,800 and will have no future use for Conklan Company. Benson Building & Supply will pick up the fireplaces so no shipping costs are involved. Due to capacity limitations, Conklan cannot accept both special orders. Which order should be accepted? Document your decision by preparing an incremental analysis for Benson's order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses eg. (2,945).) Net Income Reject order Accept order Increase (Decrease) Revenues 2$ 2$ Costs Cost of Goods Sold Operating Expenses Unique part Net Income Conklan should accept the order from Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity: Sales (79,900 units) $7,111,100 Cost of goods sold 5,093,625 Gross profit 2,017,475 Operating expenses 799,000 Net income $1,218,475 Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. In October, Conklan Company receives a special order for 4,200 fireplaces at $61 each from Langston's Landscape Company. Acceptance of the order would result in an additional $7,600 of shipping costs but no increase in fixed operating expenses. (a) v Your answer is correct. Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Net Income Reject order Accept order Increase (Decrease) Revenues $ 256200 256200 Costs Cost of Goods Sold 214200 i (214200) Operating Expenses 29400 (29400) Before Conklan could give Langston's Landscape Company an answer, they received a special order from Benson Building & Supply for 14,600 fireplaces. Benson is willing to pay $64 per fireplace but they want a special design imbedded into the fireplace that increases cost of goods sold by $68,620. The special design also requires the purchase of a part that costs $4,800 and will have no future use for Conklan Company. Benson Building & Supply will pick up the fireplaces so no shipping costs are involved. Due to capacity limitations, Conklan cannot accept both special orders. Which order should be accepted? Document your decision by preparing an incremental analysis for Benson's order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses eg. (2,945).) Net Income Reject order Accept order Increase (Decrease) Revenues 2$ 2$ Costs Cost of Goods Sold Operating Expenses Unique part Net Income Conklan should accept the order from

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Answer Langston Landscape Company Reject Order Accept Order Net Income Incre... View the full answer