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 (349,200 units) | $4,375,000 | ||
Cost of goods sold | 2,595,000 | ||
Gross profit | 1,780,000 | ||
Operating expenses | 839,300 | ||
Net income | $940,700 |
Cost of goods sold was 77% variable and 23% fixed; operating
expenses were 87% variable and 13% fixed.
In September, Moonbeam Company receives a special order for 18,500
toasters at $8.03 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 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).)
Reject Order |
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 dollar amount | $enter a dollar amount | $enter a dollar amount |
(b)
Should Moonbeam Company accept the special order?
Moonbeam Company select an option should rejectshould accept the special order. |
(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).)
Reject Order |
Accept Order |
Net Income Increase (Decrease) |
|||||
---|---|---|---|---|---|---|---|
Revenues | 0 | 148555 | 148555 | ||||
Cost of goods sold | 0 | -105859 | -105859 | ||||
Operating expenses | 0 | -41684 | -41684 | ||||
Net income | 0 | 1012 | 1012 |
(b)
Should Moonbeam Company accept the special order?
Moonbeam Company should accept the special order. |
Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following...
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 (349,200 units)
$4,375,000
Cost of goods sold
2,595,000
Gross profit
1,780,000
Operating expenses
839,300
Net income
$940,700
Cost of goods sold was 77% variable and 23% fixed; operating
expenses were 87% variable and 13% fixed.
In September, Moonbeam Company receives a special order for 18,500
toasters at $8.03 each from Luna Company of Ciudad...
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 (349,300 units) $4,370,000 Cost of goods sold 2,602,000 Gross profit 1,768,000 Operating expenses 839,500 Net income $928,500 Cost of goods sold was 77% variable and 23% fixed; operating expenses were 87% variable and 13% fixed. In September, Moonbeam Company receives a special order for 24,400 toasters at $8.38 each from Luna Company of Ciudad...
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 (349,300 units) $4,370,000 Cost of goods sold 2,602,000 Gross profit 1,768,000 Operating expenses 839,500 Net income $928,500 Cost of goods sold was 77% variable and 23% fixed; operating expenses were 87% variable and 13% fixed. In September, Moonbeam Company receives a special order for 24,400 toasters at $8.38 each from Luna Company of Ciudad...
Exercise 21-3 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 (350,200 units) Cost of goods sold Gross profit Operating expenses Net income $4,375,000 2,598,000 1,777,000 840,500 $936,500 Cost of goods sold was 67% variable and 33% fixed; operating expenses were 77% variable and 23% fixed. In September, Moonbeam Company receives a special order for 21,700 toasters at $7.97 each from Luna Company...
Exercise 21-3 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 (350,500 units) Cost of goods sold Gross profit Operating expenses Net income $4,375,000 2,607,000 1,768,000 840,000 $928,000 Cost of goods sold was 65% variable and 35% fixed; operating expenses were 75% variable and 25% fixed. In September, Moonbeam Company receives a special order for 23,100 toasters at $7.85 each from Luna Company...
Question 9
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 (350,800 units)
$4,374,000
Cost of goods sold
2,606,000
Gross profit
1,768,000
Operating expenses
841,000
Net income
$927,000
Cost of goods sold was 67% variable and 33% fixed; operating
expenses were 77% variable and 23% fixed.
In September, Moonbeam Company receives a special order for 21,100
toasters at $8.04 each from Luna Company...
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 (349,500 units) Cost of goods sold Gross profit Operating expenses Net income $4,377,000 2,591,000 1,786,000 840,300 $945,700 Cost of goods sold was 77% variable and 23% fixed; operating expenses were 87% variable and 13% fixed. In September, Moonbeam Company receives a special order for 21,600 toasters at $8.12 each from Luna Company of Ciudad...
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) $4,380,000 Cost of goods sold 2,589,120 Gross profit 1,790,880 Operating expenses 837,620 Net income $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....
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 (358,400 units) $4,377,000 Cost of goods sold 2,590,720 Gross profit 1,786,280 Operating expenses 837,760 $948,520 Net income 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 24,500 toasters at $8.38 each from Luna Company of Ciudad Juarez....
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 (352,800 units) Cost of goods sold Gross profit Operating expenses Net income $4,379,000 2,605,680 1,773,320 837,900 $935,420 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 19,100 toasters at $7.99 each from Luna Company of Ciudad Juarez....