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Problem 7.34A a-c Pro Sports Inc, manufactures basketballs for professional basketball associations. For the first six months of 2020, the company reported the following operating
Problem 7.34A a-c Pro Sports Inc, manufactures basketballs for professional basketball associations. For the first six months of 2020, the company reported the following operating results while operating at 90% of plant capacity: Amount Per Unit Sales $5,416,200 $51.00 Cost of goods sold 3,610,800 34.00 Selling and administrative expenses 435,420 4.10 Net Income $1,369,900 $12.90 Fixed costs for the period were cost of goods sold of $1,062,000, and selling and administrative expenses of $191,160 In July, normally a slack manufacturing month, Pro Sports receives a special order for 10,620 basketballs at $30 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.75 per unit because of shipping costs, but it would not increase foxed costs and expenses. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, 0.9. 15.25 and final answers to decimal places, e... 125.) Incremental revenue Incremental cost Variable COGS Variable S&A Additional S&A Incremental income Should Pro Sports Inc. accept the special order? Pro Sports Inc. should the special order
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