Question
Crane 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
Crane 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 119,400 units. sales $4,776,000 Cost of good sold 3,509,190 selling and administrative expenses 513,516 Net income $753294 Fixed costs for the period were cost of good sold $960.000, and administrative expenses $258,000 In July, normally a slack manufacturing month, crane receives a special order for 10,000 basket balls at $27 each from the Greek Basketball association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.73 unit because of shipping costs but would not increase fixed costs and expenses. 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 or (decrease) Revenues $ Cost of goods sold Selling and administrative expenses----------------------------- Net Income $ b. Should Crane Inc. accept the special order? c. what is the minimum selling price on the special order to produce net income of $5.12 ball? (round answer to 2 decimal places, e.g. 12.25.)
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