(Solved):Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the…

 

Question

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

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