Blue Sports Inc. manufactures basketballs for the Womens National Basketball Association (WNBA). For the first 6 months of 2017, the company reported the following operating results while operating at 80% of plant capacity and producing 119,400 units.

		Amount
Sales		$4,776,000
Cost of goods sold		3,509,190
Selling and administrative expenses		513,516
Net income		$753,294

Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $258,000. In July, normally a slack manufacturing month, Blue Sports receives a special order for 10,000 basketballs at $27 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.73 per unit because of shipping costs but would not increase fixed costs and expenses.

* CALCULATOR PRINTER VERSION BACK NEXT Problem 12-1 Blue Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2017, the company reported the following operating results while operating at 80% of plant capacity and producing 119,400 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,776,000 3,509,190 513,516 $753,294 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $258,000. In July, normally a slack manufacturing month, Blue Sports receives a special order for 10,000 basketballs at $27 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.73 per unit because of shipping costs but would not increase fixed costs and expenses. Your answer is partially correct. Try again. Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e.g. 15.25. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues 270000 270000 X Cost of goods sold 0 213500 213500 M X Selling and administrative expenses 0 28700 28700 M 1 Net income 27800 27800 Should Blue Sports Inc. accept the special order? D CALCULATOR PRINTER VERSION BACK NEXT Reject Order Accept Order LE ALVEL Increase (Decrease) Revenues 0 270000 270000 Cost of goods sold 213500 213500 Selling and administrative expenses 0 28700 28700 Net income 0 27800 27800 Should Blue Sports Inc. accept the special order? Yes INK TO TEXT VIDEO: SIMILAR PROBLEM VIDEO: SIMILAR PROBLEM x Your answer is incorrect. Try again. What is the minimum selling price on the special order to produce net income of $5.12 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price 50 LINK TO TEXT VIDEO: SIMILAR PROBLEM Question Attempts: 2 of 10 used