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Problem 26-1A (Part Level Submission) ShurShot Sports Inc. manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2014, the company
Problem 26-1A (Part Level Submission) ShurShot Sports Inc. manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2014, the company reported the following operating results while operating at 80% of plant capacity and producing 127,920 units. Amount $6,396,000 3,908,856 Sales revenue Cost of goods sold Selling and administrative expenses Net income 399,530 $2,087,614 Fixed costs for the period were cost of goods sold $960,300, and selling and administrative expenses $223,000. In July, normally a slack manufacturing month, ShurShot Sports receives a special order for 12,100 basketballs at $25 each from the Greek Basketball Association (GBA) Acceptance of the order would increase variable selling and administrative expenses $0.33 per unit because of shipping costs but would not increase fixed costs and expenses
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