Moonbeam company manufactures toasters. For the first 8 monthsof 2017 the company reported the following operating results whileoperating at 75% of plant capacity sales (350,000 units) 4375000
cogs 2600000
gross profit 1775000
operating expense 840000
net income 935000
cost of goods sold was 70% variable and 30% fixed. operatingexpenses were 80% variable and 20% fixed. moonbeam receives aspecial order for 15000 toasters at 7.60 each from Luna Company. Acceptance of the order would result in an additional 3000 ofshipping cost but no increase in fiaxed assets
a) prepare an incremental analysis for the special order
b) Should Moonbeam accept the special order. Why or why not.

Required: 1-a. the marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. calculate the increase or decrease in net operating income. 1-b. should the advertising budget be increased ? yes no hintsreferencesebook & resources hint #1 check my work 8.value: 1.00 pointsrequired information 2-a. refer to the original data. management is considering using higher-quality components that would increase the variable expense by $2 per unit. the marketing manager believes that the higher-quality product would increase sales by 10% per month. calculate the change in total contribution margin. 2-b. should the higher-quality components be used? yes no