Oriole Company manufactures cappuccino makers. For the first eight months of 2022, the company reported the...
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Oriole 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 (440,000 units) $79,200,000 Cost of goods sold 47,520,000 Gross profit 31,680,000 Operating expenses 21,120,000 Net income $10,560,000 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, Oriole Company receives a special order for 35,200 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $8,800 of shipping costs but no increase in fixed expenses. Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter 0 for the amounts.) ORIOLE COMPANY Incremental Analysis Net Income Reject Order Accept Order Increase (Decrease) 4752000 4752000 3334000 -3334000 1240800 -1240800 177200 $ 177200 %24 %24 %24 %24 Should Oriole Company accept the special order? Oriole Compa accept the special order. should should not Save for Latek Oriole 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 (440,000 units) $79,200,000 Cost of goods sold 47,520,000 Gross profit 31,680,000 Operating expenses 21,120,000 Net income $10,560,000 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, Oriole Company receives a special order for 35,200 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $8,800 of shipping costs but no increase in fixed expenses. Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter 0 for the amounts.) ORIOLE COMPANY Incremental Analysis Net Income Reject Order Accept Order Increase (Decrease) 4752000 4752000 3334000 -3334000 1240800 -1240800 177200 $ 177200 %24 %24 %24 %24 Should Oriole Company accept the special order? Oriole Compa accept the special order. should should not Save for Latek
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ORIOLE COMPANY Incremental Analysis Particulars Reject order Accep... 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:
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