Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results while operating at 75% of plant capacity:
Sales (350,300 units) $4,372,000
Cost of goods sold 2,601,000
Gross profit 1,771,000
Operating expenses 839,500
Net income $931,500
Cost of goods sold was 68% variable and 32% fixed; operating expenses were 78% variable and 22% fixed.
In September, Moonbeam Company receives a special order for 21,800 toasters at $7.80 each from Luna