P20-1A ShurShot Sports Inc. manufactures basketballs for the National Basketball Association (NBA). For the rst 6 months of 2014, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Amount Sales $4,800,000 Cost of goods sold 3,600,000 Selling and administrative expenses 405,000 Net income $ 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 slack manufacturing month, ShurShot 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 $0.50 per unit because of shipping costs but would not increase xed costs and expenses. Instructions (a) Prepare an incremental analysis for the special order. (b) Should ShurShot Sports Inc. accept the special order? Explain your answer. (c) What is the minimum selling price on the special order to produce net income of $4.00 per ball? (d) - What nonnancial factors should management consider in making its decision