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Ivanhoe 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
Ivanhoe 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 120,000 units. Sales Cost of goods sold Selling and administrative expenses Net income Revenues Cost of goods sold Amount Selling and administrative expenses $4,680,000 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $271,000. In July, normally a slack manufacturing month, Ivanhoe Sports receives a special order for 10,000 basketballs at $29 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. Net income 3.582.000 (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 e.g.-45 or parentheses eg. (45).) 513,400 $584,600 Reject Order (b) Should Ivanhoe Sports Inc. accept the special order? Accept Order $ $ Net Income Increase (Decrease)
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