Question 1 & 2:- 
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 $ 3,780,000 $ 50.00 Cost of goods sold 2,646,000 35.00 Selling and administrative expenses 340,200 4.50 Net income $ 793,800 $ 10.50 Fixed costs for the period were cost of goods sold of $ 756,000, and selling and administrative expenses of $ 136,080. In July, normally a slack manufacturing month, Pro Sports receives a special order for 7,560 basketballs at $ 31 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $ 0.25 per unit because of shipping costs, but it would not increase fixed costs and expenses. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to o decimal places, e.g. 125.) In July, normally a slack manufacturing month, Pro Sports receives a special order for 7,560 basketballs at $ 31 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $ 0.25 per unit because of shipping costs, but it would not increase fixed costs and expenses. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to o decimal places, e.g. 125.) Incremental revenue $ Incremental cost: Variable COGS $ Variable S&A Additional S & A Incremental income Tartbealand Media Incremental income eTextbook and Media Should Pro Sports Inc. accept the special order? Pro Sports Inc. should the special order. e Textbook and Media What is the minimum selling price on the special order to produce net income of $ 6.00 per ball? (Round answer to the 2 decimal places, e.g. 15.25.) Minimum selling price $ SY Telc has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 19,900 RecRobos is as follows: Cost Direct materials ($ 41 per robot) $ 815,900 Direct labour ($ 30 per robot) 597,000 Variable overhead ($5 per robot) 99,500 Allocated fixed overhead ($ 24 per robot) 477,600 Total $ 1,990,000 SY Telc is approached by Chen Inc., which offers to make RecRobo for $ 76 per unit or $ 1,512,400. Using incremental analysis, determine whether SY Telc should accept this offer under each of the following independent assumptions: (1) Assume that $ 298,500 of the fixed overhead cost is avoidable. (If an amount reduces the net income then enter with a negative sign preceding the number e.g.-15,000 or parenthesis, e.g. (15,000).) Net Income SY Telc is approached by Chen Inc., which offers to make RecRobo for $ 76 per unit or $ 1,512,400. Using incremental analysis, determine whether SY Telc should accept this offer under each of the following independent assumptions: (1) Assume that $ 298,500 of the fixed overhead cost is avoidable. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).) Net Income Increase (Decrease) Make Buy $ $ $ $ $ $ $ $ $ Should the offer be accepted? (2) Assume that none of the fixed overhead is avoidable. However, if the robots are purchased from Chen Inc., SY Telc can use the released productive resources to generate additional income of $ 198,500. (If an amount reduces the net income then enter with negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).) Net Income (2) Assume that none of the fixed overhead is avoidable. However, if the robots are purchased from Chen Inc., SY Telc can use the released productive resources to generate additional income of $ 198,500. (If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000).) Net Income Increase (Decrease) Make Buy $ $ $ $ $ $ $ $ $ Should the offer be accepted
