Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 21-1A ThreePoint Sports Inc, manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2017, the company reported the

image text in transcribed
image text in transcribed
image text in transcribed
Problem 21-1A 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 119,700 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,788,000 3,559,884 468,445 $759,671 Fixed costs for the period were cost of goods sold $ 960,000, and selling and administrative expenses 5 247,000 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 (GRA). Acceptance of the order would increase variable selling and administrative expenses $0.75 per unit because of shipping costs but would not increase foxed costs and expenses. Your answer is partially correct. Try again. (a) Prepare an incremental analysis for the special order. (Round all per unit computations sign preceding the number e.g.-45 or parentheses e.g. (45):) fecimal places, .g. 15.25. Enter negative amounts using alther a negative Reject Order Accept Order Net Income Increase (Decrease) Revenues Cost of goods sold 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.-5 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease Revenues SL Cost of goods sold Selling and administrative expenses Net income (b) Should ThreePoint Sports Inc. accept the special order? x Your answer is incorrect. Try again. What is the minimum selling price per unit on the special order to produce net income of $5.09 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frank Woods Business Accounting Volume 2

Authors: Frank Wood, Alan Sangster

10th Edition

0273693107, 978-0273693109

More Books

Students also viewed these Accounting questions

Question

Will formal performance reviews become obsolete? Why or why not?

Answered: 1 week ago