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Hello Please Solve: ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported
Hello Please Solve:
ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 119,400 units. Amount Sales Cost of goods sold Selling and administrative expenses Net income $4,656,600 3,684,708 526,292 $ 445,600 Fixed costs for the period were cost of goods sold $ 960,000, and selling and administrative expenses $ 266,000. 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 $0.77 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, eg. 15.25. Enter negative amounts using either a negative sign preceding the number eg.-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 Net income 0 (b) Should ThreePoint Sports Inc. accept the special orderStep by Step Solution
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