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Carla Vista Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following
Carla Vista Sports 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 118,700 units. Amount Sales $4,748,000 Cost of goods sold 3,582,083 Selling and administrative expenses 503,262 Net income $662,655 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $235,000. In July, normally a slack manufacturing month, Carla Vista Sports receives a special order for 10,000 basketballs at $28 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.(3) Prepare an incremental analysis for the Special order. (Round all per unit computations to 2 decimal places, e3. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e3. (45).) Net Income Reject Accept Increase Order Order (Decrease) Revenues $ 5 $ Cost of goods sold Selling and administrative expenses Net income 55 $ $ (b) Should Carla Vista Sports Inc. accept the special order? (c) X Your answer is incorrect. What is the minimum selling price on the special order to produce net income of $ 5.00 per ball? (Round answer to 2 decimal places, e.g. 15,25.)
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