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Cullumber Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating

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Cullumber Sports 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 119,700 units. Amount Sales $4,788,000 3,559,884 Cost of goods sold Selling and administrative expenses 468,445 Net income $759,671 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $247.000. In July, normally a slack manufacturing month, Cullumber 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 $0.75 per 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, eg, 15.25. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses eg. (45)) Reject Order Accept Order Net Income Increase (Decrease) Revenues 0 $ Cost of goods sold 0 Selling and administrative expenses 0 o Net income 0 $ $ (b) Should Cullumber Sports Inc. accept the special order? Yes

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