Sales (500000 units) $75000000
Cost of goods sold 45000000
Gross profit 30000000
Operating expenses 24000000
Net income $6000000 An analysis of costs and expenses reveals that variable cost of goods sold is $80 per unit and variable operating expenses are $30 per unit. In September Carter Company receives a special order for 40000 machines at $120 each from a major coffee shop franchise. Acceptance of the order would result in
$10000 of shipping costs but no increase in fixed expenses. Instructions
(a) Prepare an incremental analysis for the special order. Should Carter Company accept the special order? Justify your answer.