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BlueSpruce Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following
BlueSpruce Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 119.500 units. Sales Cost of goods sold Amount $4,660,500 3,675,040 Selling and administrative expenses 516,825 Net income $468,635 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $236,000. In July, normally a slack manufacturing month, BlueSpruce 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 $0.77 per unit because of shipping costs but would not increase fixed costs and expenses. (a) & (b) (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, eg. 15.25. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg (45)) Revenues Cost of goods sold Selling and administrative expenses Net income Reject Order Accept Order Net Income Increase (Decrease) $ $ (b) Should BlueSpruce Sports Inc. accept the special order? eTextbook and Media Save for Later $ Attempts: 0 of 3 used Submit Answer
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