Blossom 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 (323,400 units) $4, 380,000Cost of goods sold 2, 597,980Gross profit1, 782, 020Operating expenses840, 840Net income$941, 180Cost of goods sold was 60% variable and 40% fixed; operating expenses were 70% variable and 30% fixed.In September, Blossom receives a special order for 20, 500 toasters at $7.68 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs. (a)Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e. g. 45 or parentheses e.g . (45).)RejectOrderAcceptOrder Net Incomelncrease(Decrease) Revenues$enter a dollar amount $enter a dollar amount Senter a dollar amount Cost of goods soldenter a dollar amount enter a dollar amount enter a dollar amount Operating expensesenter a dollar amount enter a dollar amount enter a dollar amount Net income$enter a total net income amount Şenter a total net income amount Şenter a total net income amount (b)Should Blossom accept the special order?Blossom Company select an option the special order.
Blossom 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 (323,400 units) $4, 380,000Cost of goods sold 2, 597,980Gross profit1, 782, 020Operating expenses840, 840Net income$941, 180Cost of goods sold was 60% variable and 40% fixed; operating expenses were 70% variable and 30% fixed.In September, Blossom receives a special order for 20, 500 toasters at $7.68 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs. (a)Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725. Enter negative amounts using either a negative sign preceding the number e. g. 45 or parentheses e.g . (45).)RejectOrderAcceptOrder Net Incomelncrease(Decrease) Revenues$enter a dollar amount $enter a dollar amount Senter a dollar amount Cost of goods soldenter a dollar amount enter a dollar amount enter a dollar amount Operating expensesenter a dollar amount enter a dollar amount enter a dollar amount Net income$enter a total net income amount Şenter a total net income amount Şenter a total net income amount (b)Should Blossom accept the special order?Blossom Company select an option the special order.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blossom 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 (323, 400 units) $4,380,000Cost of
goods sold 2, 597, 980Gross profit1, 782, 020Operating expenses840, 840Net income $941, 180Cost of goods
sold was 60% variable and 40% fixed; operating expenses were 70% variable and 30% fixed. In September,
Blossom receives a special order for 20, 500 toasters at $7.68 each from Luna Company of Ciudad Juarez.
Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed costs.
(a)Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal
places, e.g. 15.25 and all other computations and final answers to the nearest whole dollar, e.g. 5,725.
Enter negative amounts using either a negative sign preceding the number e.g. - 45 or parentheses e.g
. (45).)RejectOrderAcceptOrder Net Incomelncrease(Decrease) Revenues$enter a dollar amount $enter a
dollar amount $enter a dollar amount Cost of goods soldenter a dollar amount enter a dollar amount enter a
dollar amount Operating expensesenter a dollar amount enter a dollar amount enter a dollar amount Net
income$enter a total net income amount Şenter a total net income amount Şenter a total net income
amount (b)Should Blossom accept the special order?Blossom Company select an option the special order.
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