Wyco company manufactures toasters for the first eight

Reference no: EM13454503

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.

Reference no: EM13454503

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