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Problem 12-1 Indigo Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2017, the company reported the
Problem 12-1 Indigo Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2017, the company reported the following operating results while operating at 80% of plant capacity and producing 120,400 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,816,000 3,700,304 492,084 $623,612 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $226,000. In July, normally a slack manufacturing month, Indigo Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.76 per unit because of shipping costs but would not increase fixed costs and expe Assignment page Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e.g. 15.25. If amount decreases net income then enter the amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues Cost of goods sold Selling and administrative expenses Order Order (Decrease) Assignment page Cost of goods sold Selling and administrative expenses Net income Should Indigo Sports Inc. accept the special order? LINK TO TEXT VIDEO: SIMILAR PROBLEM VIDEO: SIMILAR PROBLEM What is the minimum selling price on the special order to produce net income of $5.16 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling prices Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT VIDEO: SIMILAR
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