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homework? 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
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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 120,000 units. Sales Cost of goods sold Selling and administrative expenses Net Income Amount $4,800,000 3,600,000 405,000 $795,000 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $225,000 In July, normally a stack manutacturing 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 (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. (453) Reject Order Accept Order Net Income Increase (Decrease) Revenues $ Cost of goods sold Selling and administrative expenses Net Income $ (1) Should ThreePoint Sports Inc. accept the special order Step by Step Solution
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