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Problem 12-1 Pina 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 Pina 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 119,900 units. Amount Sales Cost of goods sold Selling and administrative expenses $4,676,100 3,527,059 482,601 $666,440 Net income Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $244,000. In July, normally a slack manufacturing month, Pina 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 $0.73 per unit because of shipping costs but would not increase fixed costs and expenses. Your answer is partially correct. Try again. 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 290,000 290,000 Cost of goods sold 0 (294,000) (294,000) 1001 Selling and administrative expenses x Net income Should Pina Sports Inc. accept the special order? Yes LINK TO TEXT VIDEO: SIMILAR PROBLEM VIDEO: SIMILAR PROBLEM * Your answer is incorrect. Try again. What is the minimum selling price on the special order to produce net income of $5.03 per ball? (Round answer to 2 decimal places, e.g. 15.25.) X Minimum selling price Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT VIDEO: SIMILAR
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