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QUESTION 1 Rifh Sports Inc, manufactures basketballs for the National Basketball league in Kingdom of Bahrain. For the first 6 months of 2021, the company

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QUESTION 1 Rifh Sports Inc, manufactures basketballs for the National Basketball league in Kingdom of Bahrain. For the first 6 months of 2021, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Sales Cost of Goods Sold Selling and administrative expenses Not income Amount $4,800,000 3,600,000 405.000 $ 795,000 Fixed costs for the period were $960,000, and the fixed selling and administrative expenses $225,000 In July, normally a slack manufacturing month, Rifle Sports receives a special order for 10,000 basketballs at S27 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses of $0.50 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 Greek Basketball Association (GBA)? by Should Riffa Sports 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), BI y s Paragraph Arial 10pt 111 Chick Sunil Submitted suit. Click We All Arrow

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