Carney Company manufactures cappuccino makers. For the first eight months of 2022, the...

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Accounting

Carney Company manufactures cappuccino makers. For the first eight months of 2022,
the company reported the following operating results while operating at 80% of plant
capacity:
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) Prepare an incremental analysis for the special order. (b) Should Carney Company accept the special order?
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