Problem 20-1A (Part Level Submission)

ThreePoint Sports Inc. manufactures basketballs for the Womens 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 119,400 units.

		Amount
Sales		$4,537,200
Cost of goods sold		3,570,084
Selling and administrative expenses		487,442
Net income		$479,674

Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $257,000. In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $30 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.77 per unit because of shipping costs but would not increase fixed costs and expenses.

20-1A (Part L Submi Threepni basketballs far the Wom Basketh (WNBA the first 6 ths of 2017, pany reportad th following operati hile opa g at 80% of pl capacity and producing Sports Inc. 9,400 Amount $4,53 Cost of goods sold 3,570,084 Selling $479,674 Net income Fixed costs for the period were cost of goods sold $960,000 and selling and administrative expenses $257,000. In July, nommally a slack manufacturing month, ThreePoint Sports receives a spedal order for 10,000 basketballs at $30 each from the Greek Basketball Association (GBA), Acceptance of the order would increase variable ng and administrative expenses $0.77 per unit because of shipping costs but would not inorease fixed costs and expenses. (a) & (b) alysis for the special der (Round all per computations to 2 decimal places, g. 15.25. Enter negati O. -45 .g. (45). Net Reject Accept Increase Orde Orde Decrease Revenues Cost of goods sold Selling and administrative axpanses Net income (b) Should ThreePoint Sports Inc. accept the special order? Click if you would like to show Work for this question: QRen Shew Work Attempts: 0 5 used SAVE FORLATER ANSWLR