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Really need help with this question! ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020,
Really need help with this question!
ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,300 units Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,691,700 3,533,217 509,209 $649,274 Fixed costs for the period were cost of goods sold $960.000, and selling and administrative expenses $265.000, In July,normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.73 per unit because of shipping costs but would not increase fixed costs and expenses. (a) & (b) (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, eg, 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses eg. (45)) Net Income (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, eg. 15.25, Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Reject Order Accept Order Net Income Increase (Decrease) $ Revenues Cost of goods sold Selling and administrative expenses Net income (b) Should ThreePoint Sports Inc. accept the special order Step by Step Solution
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