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Problem 7-1A a-b, c (Video) ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the
Problem 7-1A a-b, c (Video) ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 119,100 units. Amount Sales Cost of goods sold Selling and administrative expenses Net income $4,525,800 3,519,459 412,841 $593,500 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $233,000. 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 (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.76 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? 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? A LINK TO TEXT VIDEO: SIMILAR PROBLEM What is the minimum selling price on the special order to produce net income of $5.11 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $ Click if you would like to Show Work for this question: Open Show Work VIDEO: SIMILAR PROBLEM LINK TO TEXT SAVE FOR LATER SUBMIT ANSWER Question Attempts: 0 of 2 used
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