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: 

 

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.

Transcribed Image Text:

Sales (440,000 units) Cost of goods sold Gross profit Operating expenses Net income $79,200,000 47,520,000 31,680,000 21,120,000 $10,560,000 Sales (440,000 units) Cost of goods sold Gross profit Operating expenses Net income $79,200,000 47,520,000 31,680,000 21,120,000 $10,560,000

Answer rating: 100% (QA)

ORIOLE COMPANY Incremental Analysis Particulars Reject order Accep... View the full answer