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Question 1 5 points Save Answer Manama Inc, manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2021, the company
Question 1 5 points Save Answer Manama Inc, manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2021, the company reported the following operating results while operating at 90% of plant capacity and producing 90,000 units Sales Cost of Goods Sold Selling and administrative expenses Net income Amount $ 4,500,000 3,060,000 360,000 $ 1,080.000 Fixed costs for the period were cost of goods sold $900.000, and fixed selling and administrative expenses $180,000 In July, normally a slack manufacturing month, Manama Inc receives a special order for 10,000 basketballs at $30 each from the Chinese Basketball Association (CBA). Acceptance of the order would increase variable selling and administrative expenses S0.50 per unit because of shipping costs but would not increase fixed costs and fixed expenses. Required: (a) What is the financial advantage (disadvantage) of accepting the special order from the Chinese Basketball Association (GBA)? (b) Should Manama Inc. accept the special order? Explain your answer. (c) Advise to the management what resources are considering for accepting Special orders? For the toolbar, press ALT F10 (PC) or ALT+FN+F10 (Mac), BIUS Paragraph Arial 10pt E A2I % F QSE X X, & T The TT 99 2 EBER ) . !!! >
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