Question
Bridgeport Sports Inc. manufactures basketballs for the Womens National Basketball Association (WNBA). For the first 6 months of 2017, the company reported the following operating
Bridgeport 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 119,500 units.
Amount | |||
Sales | $4,660,500 | ||
Cost of goods sold | 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, Bridgeport 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.
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 t negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues 270000 T 270000 Cost of goods sold 227200 -227200 Selling and administrative expenses 640040 123215 Net income 388220 -80415 Should Bridgeport Sports Inc. accept the special order? Tres ] LINK TO TEXT VIDEO: SIMILAR PROBLEM VIDEO: SIMILAR PROBLEM * Your answer is incorrect. Try again. What is the minimum selling price on the special order to produce net income of $5.15 per ball? (Round answer to 2 decimal places, e.g. 15.25.) x Minimum selling price 29.25Step by Step Solution
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