Before Coronado could give Langston's Landscape Company an answer, the company received a special order from Benson Building & Supply for 13,500 fireplaces. Benson is willing to pay $67 per fireplace but it wants a special design imbedded into the fireplace that increases cost of goods sold by $55,350. The special design also requires the purchase of a part that costs $5,500 and will have no future use for Coronado Company. Benson Building & Supply will pick up the fireplaces so no shipping costs are involved. Due to capacity limitations, Coronado cannot accept both special orders. Which order should be accepted? Document your decision by preparing an incremental analysis for Benson's order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Reject order Revenues $ Costs Cost of Goods Sold Operating Expenses Unique part Net Income $ Coronado should accept the order from Accept order $ Net Income Increase (Decrease) $ $ $
Before Coronado could give Langston's Landscape Company an answer, the company received a special order from Benson Building & Supply for 13,500 fireplaces. Benson is willing to pay $67 per fireplace but it wants a special design imbedded into the fireplace that increases cost of goods sold by $55,350. The special design also requires the purchase of a part that costs $5,500 and will have no future use for Coronado Company. Benson Building & Supply will pick up the fireplaces so no shipping costs are involved. Due to capacity limitations, Coronado cannot accept both special orders. Which order should be accepted? Document your decision by preparing an incremental analysis for Benson's order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Reject order Revenues $ Costs Cost of Goods Sold Operating Expenses Unique part Net Income $ Coronado should accept the order from Accept order $ Net Income Increase (Decrease) $ $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Before Coronado could give Langston's Landscape Company an answer, the company received a special order from Benson Building & Supply for 13,500 fireplaces. Benson is willing to pay $67 per fireplace but it wants a special design imbedded into the fireplace that increases cost of goods sold by $55,350. The special design also requires the purchase of a part that costs $5,500 and will have no future use for Coronado Company. Benson Building & Supply will pick up the fireplaces so no shipping costs are involved. Due to capacity limitations, Coronado cannot accept both special orders. Which order should be accepted? Document your decision by preparing an incremental analysis for Benson's order. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
Transcribed Image Text:Before Coronado could give Langston's Landscape Company an answer, the company received a special order from Benson
Building & Supply for 13,500 fireplaces. Benson is willing to pay $67 per fireplace but it wants a special design imbedded into the
fireplace that increases cost of goods sold by $55,350. The special design also requires the purchase of a part that costs $5,500
and will have no future use for Coronado Company. Benson Building & Supply will pick up the fireplaces so no shipping costs are
involved. Due to capacity limitations, Coronado cannot accept both special orders. Which order should be accepted? Document
your decision by preparing an incremental analysis for Benson's order. (Enter loss using either a negative sign preceding the number
e.g. -2,945 or parentheses e.g. (2,945).)
Reject order
Revenues
$
Costs
Cost of Goods Sold
Operating Expenses
Unique part
Net Income
$
Coronado should accept the order from
Accept order
$
Net Income
Increase (Decrease)
$
$
$
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