Question: Exercise 21-3 Your answer is partially correct. Try again. Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following

Exercise 21-3 Your answer is partially correct. Try again. 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 (349,100 unit) $4,372,000 Cost of goods sold 2,590,000 Gross profit 1,782,000 Operating expenses 839,700 Net Income $942,300 Cost of goods sold was 68% variable and 32% fixed; operating expenses were 78% variable and 22% foxed. In September, Moonbeam Company receives a special order for 24,500 toasters at $8.31 each from Luna Company of Cludad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in Nxed costs. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 4 decimal places, .. 15.2567 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 numbers.g.-45 of parentheses (45)) Reject Order Accept Order Net Income Increase (Decrease) Revenues Cost of goods sold I Prepare an incremental analysis for the special order. (Round computations for per unit cost to 4 decimal places, e.g. 15.2567 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 .g.-5 or parentheses eg. (45)-) Reject Order Accept Order Net Income Increase (Decrease) Revenues Cost of goods sold Operating expenses Net Income (b) Should Moonbeam Company accept the special order? Moonbeam Company should accept the special order
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
