Question
Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $225,000. In July, normally a slack manufacturing month, ThreePoint
Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $225,000. In July, normally a slack manufacturing month, ThreePoint Sports 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 $0.75 per unit because of shipping costs but would not increase fixed costs and expenses.
B What is the minimum selling price on the special order to produce net income of $5 per ball?
Can you please help be solve for B and explan how you got the answer. THanks!
ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). F the first 6 months af 20 the company reported the folawing operating results while aperating at 80% of plant capacity and producing 120,000 units. Amount Sales $4,800,000 Cost of goods sold 3 600,000 Selling and administra 405,000 e expenses Net income $795,000Step by Step Solution
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