Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020, the company reported the following operating results while operating at 90% of plant capacity:

		Amount	Per unit
Sales		$4,500,000	$50.00
Cost of goods sold		3,150,000	35
Selling and administrative expenses		360,000	4.00
Net income		990,000	$11.00

Fixed costs for the period were cost of goods sold of $900,000, and selling and administrative expenses of $162,000.

In July, normally a slack manufacturing month, Pro Sports receives a special order for 9,000 basketballs at $30 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.50 per unit because of shipping costs, but it would not increase fixed costs and expenses.

• a. Prepare an incremental analysis for the special order.
• b. Should Pro Sports Inc. accept the special order?
• c. What is the minimum selling price on the special order to produce net income of $5.00 per ball?