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Wyco Company manufactures toasters.For the first 8 months of 2012,the company reported the following operating results while operating at 75% of plant capacity.
2,400,000
900,000
$700,000
Cost of goods sold was 70% variable and 30% fixed. Operating expenses were also 60% variable and 40% fixed.In September, Wyco Company receives a special order for 40,000 toasters at $6.00 each from Salono Company of Mexico City. Acceptance of the order would result in $8,000 of shipping costs but no increase in fixed operating expenses.
The Connecting company uses the percent of sales method of accounting for uncollectible accounts receivable. During the current year, the following transaction occurred:
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