Reference no: EM132515396

Leno Company manufactures toasters. For the first 8 months of 2014, the company reported the following operating results while operating at 75% of plant capacity:

Sales (351,500 units)  $4,383,200

Cost of goods sold    2,607,000

Gross profit             1,776,200

Operating expenses    839,200

Net income                $937,000

• Cost of goods sold was 70% variable and 30% fixed; operating expenses were 75% variable and 25% fixed.
• In September, Leno Company receives a special order for 24,600 toasters at $7.9 each from Centro Company of Ciudad Juarez. Acceptance of the order would result in an additional $3,000 of shipping costs but no increase in fixed operating expenses.

Question 1: Prepare an incremental analysis for the special order. (Round computations for per unit cost to 4 decimal places, e.g. 15.2500 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).)