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Problem 20-01A a-b, c ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company
Problem 20-01A a-b, c ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 119,100 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,525,800 3,519,459 412,841 $593,500 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $233,000. In July, normally a slack manufacturing month, ThreePoint 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 expenses. Your answer is partially correct. Try again. (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e.g. 15.25. Enter negative amounts 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 4525800 4815800 290000 X Cost of goods sold 3519459 3734359 214900 X Selling and administrative expenses 412842 420441 7600 Net income 593500 66100 67500 (b) Should ThreePoint Sports Inc. accept the special order? Yes LINK TO TEXT LINK TO VIDEO x Your answer is incorrect. Try again. What is the minimum selling price on the special order to produce net income of $5.11 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price 27.36 Click if you would like to Show Work for this question: Open Show Work
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