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7,000 units) goods sold rofit ng expenses me $6,930,000 5,005,000 1,925,000 770,000 $1,155,000 oods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. er, Lily Company receives a special order for 3,900 fireplaces at $62 each from Langston's Landscape Co 20

7,000 units) goods sold rofit ng expenses me $6,930,000 5,005,000 1,925,000 770,000 $1,155,000 oods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. er, Lily Company receives a special order for 3,900 fireplaces at $62 each from Langston's Landscape Co 20

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please show the calculation used to fill each answer box. Thank you

(a) Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Revenues Costs Cost of Goods Sold Operating Expenses Shipping Expenses Net Income tA $ Reject order $ LA $ Accept order 241800 $ Net Income Increase (Decrease)
Transcribed Image Text:(a) Prepare an incremental analysis for the special order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Revenues Costs Cost of Goods Sold Operating Expenses Shipping Expenses Net Income tA $ Reject order $ LA $ Accept order 241800 $ Net Income Increase (Decrease)
Lily Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity: Sales (77,000 units) Cost of goods sold Gross profit Operating expenses Net income $6,930,000 5,005,000 1,925,000 770,000 $1,155,000 Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. In October, Lily Company receives a special order for 3,900 fireplaces at $62 each from Langston's Landscape Company. Acceptance of the order would result in an additional $6,300 of shipping costs but no increase in fixed operating expenses.
Transcribed Image Text:Lily Company manufactures outdoor fireplaces. For the first 9 months of 2020, the company reported the following operating results while operating at 80% of plant capacity: Sales (77,000 units) Cost of goods sold Gross profit Operating expenses Net income $6,930,000 5,005,000 1,925,000 770,000 $1,155,000 Cost of goods sold was 80% variable and 20% fixed; operating expenses were 70% variable and 30% fixed. In October, Lily Company receives a special order for 3,900 fireplaces at $62 each from Langston's Landscape Company. Acceptance of the order would result in an additional $6,300 of shipping costs but no increase in fixed operating expenses.
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