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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 $ $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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)
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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