Leno Company manufactures toasters. For the first 8 months of 2014, the company reported the following operating results while operating at 75% of plant capacity.
Sales revenue (350,000 units)
Cost of goods sold
Cost of goods sold was 70% variable and 30% fixed. Operating expenses were 75% variable and 25% fixed.
In September, Leno Company receives a special order for 15,000 toasters at $7.60 each from Centro Company of Ciudad Juarez. Acceptance of the order would result in $3,000 of shipping costs but no increase in fixed operating expenses.
Purchase the answer to view it