crane company manufactures toasters. for the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity:
Sales (364,000 units) $4,371,000 Cost of goods sold 2,589,600 Gross profit 1,781,400 Operating expenses 841,750 Net income $939,650 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed.
In September, Crane receives a special order for 18,600 toasters at $7.95 each from Luna Company of Ciudad 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 2 decimal places, e.g. 15.25 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).)
RejectOrder Accept Order Net Income Increase (Decrease) Revenues $enter a dollar amount $enter a dollar amount $enter a dollar amount Cost of goods sold enter a dollar amount enter a dollar amount enter a dollar amount Operating expenses enter a dollar amount enter a dollar amount enter a dollar amount Net income $enter a total dollar amount $enter a total dollar amount $enter a total dollar amount
(b) Should Crane accept the special order?
Crane Company select an option should rejectshould accept the special order.
