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quickly please ihave only 20 munites Rita Sports Inc manufactures basketballs for the National Basketball League in Kingdom of Bahrain. For the first 6 months
quickly please ihave only 20 munites
Rita 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 Amount Sales $ 4.800.000 Cost of Goods Sold 3,600,000 Selling and administrative expenses 405,000 Net income $ 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, Riffa Sports receives a special order for 10,000 basketballs at 527 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 slupping costs but would not intense fixed costs and food expenses Required: (a) What is the financial advantage (disadvantago) of accepting the special order from the Greek Basketball Association (GBA)? (b) Should Riff 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 ( POE ALTOFN+F10(Mac B TVS Paragraph Arial 10pt A XO X XT 14 89922 1999 @ ! 30) I. a [ + + s Step by Step Solution
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