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).) Revenues Cost of goods sold Operating expenses Net income LA U+ Reject Order 0 0 0 $ $ Accept Order VA JA Net Income Increase (Decrease)

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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(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).)
Revenues
Cost of goods sold
Operating expenses
Net income
Reject
Order
0
0
0
0
$
$
Accept
Order
$
Net Income
Increase
(Decrease)
Transcribed Image Text:(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).) Revenues Cost of goods sold Operating expenses Net income Reject Order 0 0 0 0 $ $ Accept Order $ Net Income Increase (Decrease)
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 (336,000 units)
Cost of goods sold
Gross profit
Operating expenses
Net income
$4,372,000
2.596,800
1,775,200
840,000
$935,200
Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed.
In September, Blossom receives a special order for 17,500 toasters at $7.90 each from Luna Company of Ciudad Juarez. Acceptance of
the order would result in an additional $3,100 of shipping costs but no increase in fixed costs.
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 (336,000 units) Cost of goods sold Gross profit Operating expenses Net income $4,372,000 2.596,800 1,775,200 840,000 $935,200 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Blossom receives a special order for 17,500 toasters at $7.90 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,100 of shipping costs but no increase in fixed costs.
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