ProSports manufactures basketballs for professional basketball associations. For the first six months of 2021, the company reported the following operating results while operating at 80% capacity Amount Per unit Consider each of the following independent situations: SHOW ALL YOUR CALCULATIONS. a) Assume the special order is for 10,000 units. i. What is the minimum price Pro Sports should charge, in total, for this special order? ii. If Pro Sports accepts this special order of 10,000 units at $30 per unit by how much will net income increase or decrease? iii. Should Pro Sports accept the special order? $4,500,000 $50.00 3,150,000 35.00 Sales Cost of goods sold "Selling and administrative expenses Net income 360,000 4.00 $990,000 $11.00 includes variable and fixed costs b) Assume the special order is for 25,000 units. i. What is the minimum price Pro Sports should charge, in total and per unit, for this special order? (hint: compute the total price first) . Should Pro Sports accept the special order? ? ii. Fixed costs for the period were 5900,000 for costs of goods sold and $162,000 for selling and administrative expenses. c) In July, normally a slow manufacturing month, Pro Sports receives a special order for basketballs at $30 each from the European Basketball Association. Accepting the special order would increase variable selling and administrative expenses by $1.50 per unit because of shipping costs but would not increase fixed costs and expenses. Assume Pro Sports is operating at 100% and the special order is for 10,000 units. i. What is the minimum price Pro Sports should charge? Should Pro Sports accept the special order? Why? ii. ProSports manufactures basketballs for profesional basketball associations. For the first six months of 2021, the company reported the following operating results while operating al 20% Capacity . Sales Amount Per unit $4,500,000 3,150,000 $50.00 35.00 Cast af geeds sold Selling and administrative expenses Consider each of the following Independent situations: SHOW ALL YOUR CALCULATIONS. a Assume the special order is for 19000 units i What is the minimum orice Pro Sports should change in total for this , special order If Pre Sports acropts this spacial order of 10,000 units at S30 per unit by how much will net income increase or decrease? ? iii. Should Pro Sports accept the special order? 3590 4.00 Net income $930,000 $11.00 includes variable and fixed costs Fixed costs for the period were $900,000 far coats of goods sold and $162,000 for selling and acirrinistrative expersus b) Assume the spacial order is for 25,000 units. i What is the minimuri orice Pro Sports should change in total and per unit, for this speciale (int: compute the total price first Should Pro Sports accept the special order? In July, normally a slow manufacturing month, Pro Sports receves a special order for basketballs at $30 each from the European Basketball Association Accepting the special order would increase variable selling and administrative experses by $7.50 per unit because of shipping casts but would not increase fixed costs and experes - Assure Pro Sparts is operating at 100% and the special order is for 10,000 units. i What is the minimum prica Pro Sports should charga? Should Pro Sports accept the special order? Why? Produkter STY Tart 2011 mars nie wolno wa ruth Co wewe UNTULULAIMA VYKY. SEN VAN: Suit Arunt Prun 1:20 1136 TRON ride CICONEX de rand SEL . 19 AkrOLL wishold WAA.FI slo. 10 11 IETE eria . 11. ...is WINEVM19! Men' 2. Proses eucal' .1,7 1114, 1rrera LIKE tres ichid 119: Gan PYNIMIRANI ........ '-- vou b. .. IraI + 4 mi. + m 1.4;"" " ILIRILMAS. . LIDL drama .. USU try Tv's valkos
