Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity: Sales (82,200 units) $7,398,000 Cost of goods sold 5.445,750 Gross profit 1,952,250 Operating expenses 822,000 $1,130,250 Net Income Cost of goods sold was 80% variable and 20% fixed: operating expenses were 70% variable and 30% fixed. In October, Conklan Company receives a special order for 3,900 fireplaces at $63 each from Langston's Landscape Company. Acceptance of the order would result in an additional $7,200 of shipping costs but no increase in fixed operating expenses. (a) Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Net Income Increase (Decrease) Revenues Costs Cast of Goods Sold Operating Expenses Shipping Expenses Net Income $ $ Reject order $ $ Accept order $ $
Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity: Sales (82,200 units) $7,398,000 Cost of goods sold 5.445,750 Gross profit 1,952,250 Operating expenses 822,000 $1,130,250 Net Income Cost of goods sold was 80% variable and 20% fixed: operating expenses were 70% variable and 30% fixed. In October, Conklan Company receives a special order for 3,900 fireplaces at $63 each from Langston's Landscape Company. Acceptance of the order would result in an additional $7,200 of shipping costs but no increase in fixed operating expenses. (a) Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Net Income Increase (Decrease) Revenues Costs Cast of Goods Sold Operating Expenses Shipping Expenses Net Income $ $ Reject order $ $ Accept order $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Conklan Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity:
Sales (82,200 units) $7,398,000
Cost of goods sold
5.445,750
Gross profit
1,952,250
Operating expenses
822,000
$1,130,250
Net income
Cost of goods sold was 80% variable and 20% fixed: operating expenses were 70% variable and 30% fixed.
In October, Conklan Company receives a special order for 3,900 fireplaces at $63 each from Langston's Landscape Company. Acceptance of the order would result in an additional $7,200 of shipping costs but no increase in fixed
operating expenses.
(a)
Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
Revenues
Costs
Cost of Goods Sold
Operating Expenses
Shipping Expenses
Net Income
$
$
Reject order
$
$
Accept order
$
$
Net Income
Increase (Decrease)
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