Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P23.1A (LO 2) Writing ThreePoint Sports Inc. manufactures basketballs for the Women's National Basket-ball Association (WNBA). For the first 6 months of 2020, the company

image text in transcribed
P23.1A (LO 2) Writing ThreePoint Sports Inc. manufactures basketballs for the Women's National Basket-ball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Use incremental analysis for special order and identify nonfinancial factors in the decision. Amount Sales $4,800,000 Cost of goods sold 3,600,000 Selling and administrative 405,000 expenses 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, ThreePoint Sports receives a special order for 10,000 basketballs at $28 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. Instructions a. Prepare an incremental analysis for the special order. a. Nl increase $37,500 b. Should ThreePoint 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 $5.00 per ball? d. What nonfinancial factors should

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell

4th Edition

1119752620, 978-1119752622

More Books

Students also viewed these Accounting questions

Question

=+1. What is the brand's character or personality?

Answered: 1 week ago

Question

=+3. Who is the audience?

Answered: 1 week ago

Question

=+4. What do they (audience members) currently think?

Answered: 1 week ago