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Exercise 21-3 Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity: Sales (349,000 units) $4,370,000 Cost of goods sold Gross profit Operating expenses839,000 2,590,000 1,780,000 Net income $941,000 Cost of goods sold was 65% variable and 35% fixed; operating expenses were 75% variable and 25% fixed. In September, Moonbeam Company receives a special order for 15,000 toasters at $7.50 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $2,900 of shipping costs but no increase in fixed costs. Prepare an incremental analysis for the special order. (Round computations for per unit cost to 4 decimal places, e.g. 15.2567 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).) Net Income Increase Reject Order Accept Order Revenues Cost of goods sold Operating expenses Net income Should Moonbeam Company accept the special order? Moonbeam Company the special order. Question Attempts: Unlimited opyright O 2000-2018 by John Wley & Sons, Inc or related companies. All rights reserved

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