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gnment Problem 7.34A a-c PRINTER VERSION 1 BACK NEXT Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020,
gnment Problem 7.34A a-c PRINTER VERSION 1 BACK NEXT Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020, the company reported the following operating results while operating at 90% of plant capacity: Amount Sales Per Unit $3,600,000 Cost of goods sold $50.00 2,448,000 34.00 Selling and administrative expenses 252,000 3.50 Net income $900,000 $12.50 Fixed costs for the period were cost of goods sold of $720,000, and selling and administrative expenses of $129,600. In July, normally a slack manufacturing month, Pro Sports receives a special order for 7,200 basketballs at $30 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.25 per unit because of shipping costs, but it would not increase fixed costs and expenses. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.) Incremental revenue 216000 Incremental cost: Variable COGS Variable S & A Additional S & A Version 4.24.20.1 cy Policy | @ 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc
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