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Problem 20-1A (Part Level Submission) ThreePont 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) ThreePont 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 118,700 units Amount Sales $4,629,300 3,455,074 Selling and administrative expenses 483,156 $691,070 Cost of goods sold Net income Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $260,000. 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 s0.74 per unit because of shipping costs but would not increase fxed costs and expenses. (a) & (b) 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).) Net Income Increase Reject Order AcceptI Order (Decrease) 46293004929300 Cost of goods sold 345507 665274 210200 Selling and administrative expenses -483156 509356 (26200) Net income 691070 754670 63600 (b) Should ThreePoint Sports Inc. accept the special order? No Click if you would like to Show Work for this
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