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Carney Company manufactures cappuccino makers. For the first eight months of 2016, the company reported the following operating results while operating at 80% of plant capacity: Sales (500,000 units) $90,000,000 Cost of goods sold 54,000,000 Gross profit 36,000,000 Operating expenses 24,000,000 Net income $12,000,000 An analysis of costs and expenses reveals that variable cost of goods sold is $95 per unit and variable operating expenses are $35 per unit. In September, Carney Company receives a special order for 40,000 machines at $135 each from a major coffee shop franchise. Acceptance of the order would result in $10,000 of shipping costs but no increase in fixed expenses.

(a) Your answer is partially correct. Try again. Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any field blank. Enter 0 for the amounts.) CARNEY COMPANY Incremental Analysis Reject Order Accept Order Net Income Increase (Decrease) Cost of Goods SoldNet Income / (Loss)RevenuesOperating ExpenseSales Price $ $ $ RevenuesOperating ExpenseSales PriceNet Income / (Loss)Cost of Goods Sold Sales PriceRevenuesCost of Goods SoldNet Income / (Loss)Operating Expense RevenuesCost of Goods SoldOperating ExpenseSales PriceNet Income / (Loss) $ $ $

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