Crane Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Crane Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of plant capacity: Sales (630,000 units) $113,400,000 Cost of goods sold 68,040,000 Gross profit 45,360,000 Operating expenses 30,240,000 Net income $15,120.000 An analysis of costs and expenses reveals that variable cost of goods sold is $95 per unit and variable operating expenses are $35 per unit. In September, Crane Company receives a special order for 50,400 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $12,600 of shipping costs but no increase in fixed expenses. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45). Do not leave any field blank. Enter O for the amounts.) CRANE COMPANY Incremental Analysis Net Income Reject Order Accept Order Increase (Decrease) > > > Crane Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the following operating results while operating at 80% of plant capacity: Sales (630,000 units) $113,400,000 Cost of goods sold 68,040,000 Gross profit 45,360,000 Operating expenses 30,240,000 Net income $15,120.000 An analysis of costs and expenses reveals that variable cost of goods sold is $95 per unit and variable operating expenses are $35 per unit. In September, Crane Company receives a special order for 50,400 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $12,600 of shipping costs but no increase in fixed expenses. (a) Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45). Do not leave any field blank. Enter O for the amounts.) CRANE COMPANY Incremental Analysis Net Income Reject Order Accept Order Increase (Decrease) > > >
Expert Answer:
Answer rating: 100% (QA)
a Incmemental analysis for the special order CRANE COMPANY Incremental Analysis Rejec... View the full answer
Related Book For
Financial Management Principles and Applications
ISBN: 978-0134417219
13th edition
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
Posted Date:
Students also viewed these accounting questions
-
Carter Company manufactures cappuccino makers. For the first eight months of the year the company reported the following operating results while operating at 80% of plant capacity: Sales (500,000...
-
The Sharpe Corporation's projected sales for the first eight months of 2017 are as follows: Of Sharpe's sales, 10 percent are for cash, another 60 percent are collected in the month following the...
-
Carter Company manufactures cappuccino makers. For the first eight months of the year the company reported the following operating results while operating at 80% of plant capacity: Sales (500,000...
-
Skysong, Inc. sells products that carry a two-year warranty. Any defective product is replaced with a new item taken from inventory. Management believes that this is the most cost-effective way to...
-
a. Total assets of Charter Company equal $500,000 and its equity is $320,000. What is the amount of its liabilities? b. Total assets of Golfland equal $900,000 and its liabilities and equity amounts...
-
In Exercises determine the degree of the Maclaurin polynomial required for the error in the approximation of the function at the indicated value of x to be less than 0.001. cos(0.75)
-
Consider temperature measurement in a gas stream using the thermocouple junction described in Problem 7.66 ( \(D=2 \mathrm{~mm}, \varepsilon=0.60\) ). If the gas velocity and temperature are \(2...
-
Charles was always a hands-on type of person. Within a couple of years of graduating from college, he started his own business. After some 20 years, it has grown significantly. He owns and operates...
-
Simplify the expression 5 4 4 z 2 + 9 9 z 2
-
On January 1, A and B entered into a contract under which B agreed to renovate A's house by September 1 for $60,000.00. By June 2, B has not yet started the renovations, and A is worried, so A tells...
-
When using a Java RowSet object to query data, one has to create an instance of the RowSet Implementation class, not the RowSet class itself, since all RowSet classes are abstract classes....
-
Suppose that in 2008, tomato growers in Florida lobby the U.S. government to impose an import quota on Mexican tomatoes. Explain who in the United States would gain and who would lose from such a...
-
A static query is called a Named Query, and it is defined statically with the help of annotation or XML before the entity class is created.(True/False)
-
Would a tax per mile driven be more efficient or less efficient than a tax per gallon of gasoline? Explain your answer. Is raising the federal gasoline tax the best way to fund highways? The 18.4...
-
The advantage of using the getObject() method is that a returned datum, which is stored in a ResultSet object with an unknown data type, can be automatically converted from its Oracle data type to...
-
can you please help me do a IS/BS for below company... James North, managing director and sole shareholder of Top Tier Manufacturing (Pty) Ltd has approached you for some financial help. The...
-
Gordon and Lisa estimate that they will need $1,875,000 in 40 years for their retirement years. If they can earn 8 percent annually on their funds, how much do they need to save annually?
-
For years, GM treated each car brand as if it were a separate company, considering all new car sales as incremental sales. Critically evaluate this position.
-
Apex Fabricating, Inc., manufactures fenders and other after-market body panels for older automobiles. At the close of last year, the firm had $10,381,800 in current assets and $4,152,720 in current...
-
If depreciation is not a cash flow item, why does it affect the level of cash flows from a project?
-
Jason Vu offers tutoring services to first-year university students. He has set up a sole proprietorship business named JV Tutoring. Jason has collected the following information relating to his...
-
Finesse Fitness was established on 1 April 2024 with an initial investment of $60000 by the owner, Daniel Hewitt. During the first few months of business, the owner employed a student studying...
-
Yamindi was raised on a farm in the Northern Territory and loves animals. When he finished secondary school, Yamindi had nearly \($5000\) in a savings account. He used his savings to start a business...
Study smarter with the SolutionInn App