(Solved):Reno Company manufactures toaster ovens. For the first 8 months of 2017, the company reported the…

 

Question

Reno Company manufactures toaster ovens. For the first 8 months of 2017, the company reported the following operating results while operating at 95% of plant capacity:

Sales revenue (361,000 units) $4,512,500
Cost of goods sold 2,346,500
Gross profit 2,166,000
Operating expenses 866,400
Net income $1,299,600

Cost of goods sold was 75% variable and 25% fixed; operating expenses were 75% variable and 25% fixed. In September, Reno Company receives a special order for 15,000 toasters at

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