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Coronado Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at
Coronado Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity: Amount Per Unit Sales $4,050,000 $50.00 Cost of goods sold 2,835,000 35.00 Selling and administrative expenses 307,800 3.80 Net income $907,200 $11 20 Fixed costs for the period were cost of goods sold of $810,000, and selling and administrative expenses of $145,800. In July. normally a slack manufacturing month, Coronado receives a special order for 8,100 basketballs at $31.00 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.50 per unit because of shipping costs, but it would not increase fixed costs and expenses. (a) Your answer is partially correct. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125.) Incremental revenue 251100 Incremental cost: Variable COGS 283500 Variable S & A 050 Additional 5 & A Incremental income 36450
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