Problem 21-1A 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.

Sales $ 4,656,600

Cost of goods sold 3,684,708

Selling and administrative expenses 526,292

Net income $ 445,600

Fixed costs for the period were cost of goods sold $ 960,000 , and selling and administrative expenses $ 266,000 .

In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $ 28 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.

(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 $ $ $

Cost of goods sold

Selling and administrative expenses

Net income $ $ $

(b) Should ThreePoint Sports Inc. accept the special order?

What is the minimum selling price on the special order to produce net income of $5.16 per ball? (Round answer to 2 decimal places, e.g. 15.25.)

Minimum selling price $