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Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020, the company reported the following operating results while
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 $4,770,000 $50.00 Cost of goods sold 3,243,600 34.00 Selling and administrative expenses 400,680 4.20 Net income $1,125,720 $11.80 Fixed costs for the period were cost of goods sold of $954,000, and selling and administrative expenses of $171,720. In July, normally a slack manufacturing month, Pro Sports receives a special order for 9,540 basketballs at $32 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.75 per unit because of shipping costs, but it would not increase fixed costs and expenses. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125.) Incremental revenue Incremental cost: Variable COGS $ Variable S & A Additional S & A Incremental income eTextbook and Media $ $ Should Pro Sports Inc. accept the special order? Pro Sports Inc. should the special order. eTextbook and Media What is the minimum selling price on the special order to produce net income of $6.00 per ball? (Round answer to the 2 decimal places, e.g. 15.25.) Minimum selling price $ eTextbook and Media
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