- BUS-317 Topic 06 Assignment Question 1 of 4 4.15 / 6 View Policies Show Attempt History Current Attempt in Progress Cullumber Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at 80% of plant capacity and producing 118,800 units. Amount Sales $4,514,400 Cost of goods sold 3,560,532 Selling and administrative expenses 468,164 Net income $485,704 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $227,000. In July, normally a slack manufacturing month, Cullumber receives a special order for 10,000 basketballs at $29 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. (a) & (b) Your answer is partially correct. (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Reject Accept Increase Order Order (Decrease) Revenues $ 0 280,000 280,000 Cost of goods sold 214000 -214000 Selling and administrative 0 28900 28900 expenses Net income 37,100 37,100 (b) Should Cullumber Inc. accept the special order? Yes e Textbook and Media Save for Later Attempts: 3 of 5 used Submit Answer (c) Your answer is correct. What is the minimum selling price on the special order to produce net income of $5.08 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $ 29.73 e Textbook and Media Attempts: 1 of 5 used