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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 120,100 units. Amount Sales $4,804,000 Cost of goods sold 3,484,502 Selling and administrative expenses 448,773 Net income $870,725 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $241,000. In July, normally a slack manufacturing month, Crane 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. (a) & (b) (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 Incon Increase (Decreas Revenues $ $ $ Cost of goods sold Selling and administrative expenses Net income $ $ $ (b) Should Crane Inc. accept the special order? e Textbook and Media Save for Later Attempts: 0 of 2 used Submit Answer (c) What is the minimum selling price on the special order to produce net income of $5.06 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $ e Textbook and Media Save for Later Attempts: 0 of 2 used Submit
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