Wyco Company
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Wyco Company manufactures toasters. For the first 8 months of 2011, the company reported the following operating results while operating at 75% of plant capacity.
| Sales (400,000 units) | $4,000,000 |
| Cost of goods sold | 2,400,000 |
| Gross profit | 1,600,000 |
| Operating expenses | 900,000 |
| Net income | $700,000 |
Cost of goods sold was 70% variable and 30% fixed. Operating expenses were also 60% variable and 40% fixed.
In September, Wyco Company receives a special order for 40,000 toasters at $6.00 each from Salono Company of Mexico City. Acceptance of the order would result in $8,000 of shipping costs but no increase in fixed operating expenses.
Complete the incremental analysis for the special order.
13 years ago
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