Cost of Goods Sold

Selling and Admin Expenses

Net Income

B) Should ThreePoint Sports Inc. accept the special order?

Problem 7-1A a-b, c (Part Level Submission) (Video) ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 119,100 units. Amount $4,525,800 3,519,459 Sales Cost of goods sold Selling and administrative expenses412,841 Net income $593,500 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $233,000 In July, normally a slack manufacturing month, ThreePoint Sports 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 $0.76 per unit because of shipping costs but would not increase fixed costs and expenses. (a) & (b) X Your answer is incorrect. Try again. (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).) Reject Order Accept Order Net Income Increase (Decrease) Revenues