Oriole Sports Inc. manufactures basketballs for the Womens 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 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)

Partially correct answer icon

Your answer is partially correct.

(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).)

		Reject Order		Accept Order		Net Income Increase (Decrease)
Revenues		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Cost of goods sold		enter a dollar amount		enter a dollar amount		enter a dollar amount
Selling and administrative expenses		enter a dollar amount		enter a dollar amount		enter a dollar amount
Net income		$enter a total net income amount		$enter a total net income amount		$enter a total net income amount

(b) Should Oriole Sports Inc. accept the special order? select an option YesNo