Question

Practice Assignment Gadebuok ORION Downloadable eTextbook nment CALCULATOR FULL SCREEN PRINTER VERSION NEXT BACK Exercise 20-3 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 (350,000 units) $4,375,000 Cost of goods sold 2,600,000 Gross profit 1,775,000 Operating expenses 840,000 $935,000 Net income Cost of goods sold was 70% variable and 30 % fixed ; operating expenses were 80 % variable and 20 % fixed . In September, Mponbeam Company receives a special order for 15,000 toasters at $7.60 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 fixed costs. (a) Prepare an incremental analysis for the special order. (Round computations for per unit cost to 4 decimal places, e.g. 15.2500 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 e.g. -45 or parentheses e.g. (45).) Net Income Reject Order Accept Order Increase (Decrease) 114,000 114,000 Revenues 0 acy Policy I 2000-2019 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. Version 4.24.16.2

Answer 1

ДА В с 1 a. Reject Order SO 3 Revenues 4 Cost of goods sold 5 Operating expenses 6 Net income $0 Net Income Increase (Decrease) $114.000 ($78,000) ($31.800) $4,200 Accept Order $114.000 $78,000 $31.800 $4,200 SO 8 b. 9 Moonbeam Company should accept the special order. Calculations are shown below: B D 1 a. Reject Order 3 Revenues 4 Cost of goods sold 5 Operating expenses O 6 Net income Accept Order =15000*7.6 =((2600000*70%)/350000)* 15000 =(((840000*80%)/350000*15000+3000 C3-C4-C5 Net Income Increase (Decrease) =C3-B3 =B4-C4 =B5-C5 =C6-B6 19 8 b. 9 Moonbeam Company should accept the special order.