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Oriole 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
Oriole 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. Amount Sales $4,804,000 Cost of goods sold 3,503,718 Selling and administrative expenses 447.783 Net income $852,499 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 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. Reject Order Accept Order Net Income Increase (Decrease) Revenues $ $ TA $ Cost of goods sold Selling and administrative expenses Net income $ $ $ $ (b) Should Oriole Inc. accept the special order? Yes e Textbook and Media Save for Later Attempts: 0 of 5 used Submit Answer (c). What is the minimum selling price on the special order to produce net income of $5.17 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $
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