Parker Manufacturers produces can openers. For the first six months of 2011, the company reported the following...

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Parker Manufacturers produces canopeners. For the first six months of 2011, the company reported thefollowing operating results while operating at 80% of plantcapacity.
Sales                                                  $4,000,000
Cost of goodssold                             2,500,000
Grossprofit                                          1,500,000
Operatingexpenses                           1,000,000
Netincome                                        $   500,000
Cost of goods sold was 70% variableand 30% fixed. Operating expenses were 70% variable and 30% fixed.In September 2011, Parker Manufacturers receives a special orderfor 15,000 can openers at $7.50 from a foreign company. The canopeners normally sell for $8.00. Acceptance of the special orderwould result in $5,000 of shipping costs but no increase in fixedoperating expenses.
Instructions
Prepare an incremental analysis forthe special order.

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given data sales 4000000 cost of goods sold 2500000 operating expenses 1000000 variable cost 70 that is 2500000 70 1750000 variable operating expenses 70 that is 1000000 70 700000 special order See Answer

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Parker Manufacturers produces canopeners. For the first six months of 2011, the company reported thefollowing operating results while operating at 80% of plantcapacity.Sales $4,000,000Cost of goodssold 2,500,000Grossprofit 1,500,000Operatingexpenses 1,000,000Netincome $ 500,000Cost of goods sold was 70% variableand 30% fixed. Operating expenses were 70% variable and 30% fixed.In September 2011, Parker Manufacturers receives a special orderfor 15,000 can openers at $7.50 from a foreign company. The canopeners normally sell for $8.00. Acceptance of the special orderwould result in $5,000 of shipping costs but no increase in fixedoperating expenses.InstructionsPrepare an incremental analysis forthe special order.