Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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
Expert Answer:
Answer rating: 100% (QA)
Answer Langston Landscape Company Reject Order Accept Order Net Income Incre... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date:
Students also viewed these accounting questions
-
A manager in your organization just received a special order at a price that is below cost. The manager points to the document and says, These are the kinds of orders that will get you in trouble....
-
Conroe Company reported the following operating results for two consecutive years. Required Express each income statement component for each of the two years as a percent of sales. Amount Percent of...
-
Wallace Company reported the following operating results for two consecutive years. Required Express each income statement component for each of the two years as a percentage ofsales. Percentage of...
-
Amrito Corporation is under financial distress and raises debt because it has several projects that are expected to generate profit in the future. When calculating its weighted average cost of...
-
Explain the general provisions applicable to a partner transferring property to a partnership in exchange for a partnership interest.
-
Marnie buys 500 shares of qualified small business stock in H.R. Pizza, Inc., on September 10, 2008 for $20,000. She sells the 500 shares for $120,000 on October 2, 2018. Marnie's other capital asset...
-
The insurance claims (in dollars) from an auto insurance company. Find the range, mean, variance, and standard deviation of the sample data set. 1514 1473 1847 1746 1545 612 1204 612 585 994 883 705...
-
This problem is based on the information about the Murphy County General Fund budgeted and actual transactions and events described in Problem 4-2. In Problem 4-2, The Murphy County Commissioners...
-
1). Do you think that other LDCs could pursue export-led growth strategies as effectively as the East Asian NIEs? 2). What political factors do you believe explain different success rates in the use...
-
The data set cherry.dat, from Hand et al. (1994), contains measurements of diameter (inches), height (feet), and timber volume (cubic feet) for a sample of 31 black cherry trees. Diameter and height...
-
Internal controls are methods and strategies used to keep information and inventory safe from theft and to easily tell if something is compromised or missing. In this assignment, you will recommend...
-
A standard die (plural is dice) is a cube with six sides numbered one through six. Each side has an equal chance of coming up. There are many games of chance that use one or more dice to generate...
-
Using the following information, what is the cost to lease a car? (Assume there are no charges for damage at the end of the lease.) Security deposit Monthly lease payment Opportunity cost of security...
-
Riverdale Partners wants to introduce a new line of fragrances. Market research indicates that a potential fragrance would sell well in the market priced at $367.36 each. Riverdale requires an...
-
Simplify: (-0.4)4
-
Veach Division has total assets (net of accumulated depreciation) of $462,000 at the beginning of year 1. One of the assets is a machine that has a net book value of $48,720. Expected divisional...
-
At what rate is thermal energy (in Watt) being generated in the 2R-resistor when 15 V and R = 9 ? R R PG 2R www. R
-
Graph the following conic sections, labeling vertices, foci, directrices, and asymptotes (if they exist). Give the eccentricity of the curve. Use a graphing utility to check your work. 10 5 + 2 cos 0
-
The American Acupuncture Association offers continuing professional education courses for its members at its annual meeting. Instructors are paid a fee for each student attending their courses but...
-
What are the three ranges of difficulty instandard setting? What level of difficulty normally results in superior employee motivation?
-
Tucker Manufacturing is developing an activity-based costing system to improve overhead cost allocation. One of the first steps in developing the system is to classify the costs of performing...
-
The hydrodynamic boundary layer equations consist of one momentum equation and the continuity equation. How does one solve for the pressure?
-
In laminar flow, why does the heat transfer coefficient decrease as the boundary layer thickness grows?
-
How does the hydrodynamic boundary layer thickness depend upon the Reynolds number?
Study smarter with the SolutionInn App