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incremental analysis Oriole Sports inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022. the company reported the
incremental analysis
Oriole 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 120,100 units. Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $228,000. In July, normally a slack manufacturing month, Oriole Sports receives a special order for 10,000 basketballs at $27 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.73 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, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (b) Should Oriole Sports Inc. accept the special order Step by Step Solution
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