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) Incremental analysis
Reject order | special order | Net income increase (decrease) | |
Revenue | 0 | 148555 | 148555 |
Cost of goods sold | 0 | -105859 | -105859 |
Operating expenses | 0 | -41684 | -41684 |
Net income | 0 | 1012 | 1012 |
b) Should accept the 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...
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 (349,300 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 (349,500 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...
- Your answer is partially correct. 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...
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....