* Clear and detailed explanation of the special order and the non - financial factors

QUESTION 2 Haslett manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2017, the company reported the following operating results while operating at 90% of plant capacity. Amount Per Unit Sales RM4,500,000 RM50.00 3,150,000 35.00 Cost of goods sold Selling and administrative expenses 360,000 4.00 Net income RM 990,000 RM11.00 Fixed costs for the period were: Cost of goods sold RM900,000, and selling and administrative expenses RM135,000 In July, normally a slack manufacturing month. Haslett receives a special order for 9,000 basketballs at RM32 each from the European Basketball Association (EBA). Acceptance of the order would increase variable selling and administrative expenses RM0.50 per unit because of shipping costs but would not increase fixed costs and expenses. Required (a) Prepare an incremental analysis for the special order. (6 marks) (b) Should Haslett accept the special order? (1 mark) (c) What is the minimum selling price on the special order to produce net income of RM5.00 (2 marks) (d) What nonfinancial factors should management consider in making its decision? (3 marks) per ball