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Problem 20-1A (Part Level Submission) ThreePoint Sports Inc. manufactures basketballs for the women's National Basketball Association (WNBA). For the first 6 months of 2017, the
Problem 20-1A (Part Level Submission) ThreePoint 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 119,400 units. Amount $4,776,000 3,509,190 Sales Cost of goods sold Selling and administrative expenses Net income 513,516 $753,294 Fixed costs for the period were cost of goods sold 960,000, and selling and administrative expenses $258,000. In July, nermally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $27 each from the Greek Basketball administrative expenses $0.73 per unit because of shipping costs but would not increase fixed costs and expenses. n (GBA). Acceptance of the order would increase variable selling and (a) & (b) (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 cither a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net Income Reject Order Accept Order (Decrease) Revenues Cost of goods sold Selling and administrative expenses Net income (b) Should ThreePoint Sports Inc. accept the special order? Attempts: 0 of 15 used
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