Question

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Your answer is partially correct. Try again. Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (347,200 units) Cost of goods sold Gross profit Operating expenses Net income $4,380,000 2,589,120 1,790,880 837,620 $953,260 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Moonbeam receives a special order for 18,300 toasters at $7.67 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).) Reject Order Accept Order Net Income Increase (Decrease) Revenues 140361 140361 Cost of goods sold 5526 95526 Operating expenses 38319 38319 Net income 6516 T 6516 (b) Should Moonbeam accept the special order? Moonbeam Company U should accept the special order.

Answer 1

You just need to put a 'minus' sign in front.

	Reject	Accept
Revenues	0	140361	140361
Cost of Goods Sold	0	95526	-95526
Operating expenses	0	38319	-38319
Net income	0	6516	6516