Sheridan Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results whi operating at 75% of plant capacity: Sales (352,800 units) Cost of goods sold Gross profit Operating expenses Net income (a) Revenues Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. In September, Sheridan receives a special order for 19,100 toasters at $7.99 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. Cost of goods sold Operating expenses Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 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 $4,379,000 2,605,680 (b) 1,773,320 Sheridan Company 837,900 $ $935,420 Reject Order Should Sheridan accept the special order? the special order. $ $ Accept Order $ $ Net Income Increase (Decrease)

Cornerstones of Cost Management (Cornerstones Series)
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Chapter2: Basic Cost Management Concepts
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Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Sheridan Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while
operating at 75% of plant capacity:
Sales (352,800 units)
Cost of goods sold
Gross profit
Operating expenses
Net income
(a)
Revenues
Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed.
Cost of goods sold
In September, Sheridan receives a special order for 19,100 toasters at $7.99 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.
Operating expenses
$4,379,000
Net income
Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 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).)
(b)
2,605,680
1,773,320
Sheridan Company
837,900
$
$935,420
Reject
Order
Should Sheridan accept the special order?
the special order.
$
$
Accept
Order
$
$
Net Income
Increase
(Decrease)
Transcribed Image Text:Sheridan Company manufactures toasters. For the first 8 months of 2022, the company reported the following operating results while operating at 75% of plant capacity: Sales (352,800 units) Cost of goods sold Gross profit Operating expenses Net income (a) Revenues Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed. Cost of goods sold In September, Sheridan receives a special order for 19,100 toasters at $7.99 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. Operating expenses $4,379,000 Net income Prepare an incremental analysis for the special order. (Round computations for per unit cost to 2 decimal places, e.g. 15.25 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).) (b) 2,605,680 1,773,320 Sheridan Company 837,900 $ $935,420 Reject Order Should Sheridan accept the special order? the special order. $ $ Accept Order $ $ Net Income Increase (Decrease)
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