Question
Pharoah Sports Inc. manufactures basketballs for the Womens National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating
Pharoah 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 118,700 units.
Amount Sales $4,629,300 Cost of goods sold 3,455,074 Selling and administrative expenses 483,156 Net income $691,070
Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $260,000.
In July, normally a slack manufacturing month, Pharoah Sports receives a special order for 10,000 basketballs at $30 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.74 per unit because of shipping costs but would not increase fixed costs and expenses.
What is the minimum selling price on the special order to produce net income of $5.13 per ball? (Round answer to 2 decimal places, e.g. 15.25.)
Minimum selling price $enter the minimum selling price in dollars rounded to 2 decimal places
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