Question
Show Attempt History Current Attempt in Progress ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months
Show Attempt History Current Attempt in Progress 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 119.400 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,776,000 3,509,190 513,516 $753,294 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $258,000. In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $27 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. Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $258,000. In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $27 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) Your answer is partially correct. (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 e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) (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 e.g. (45).) Revenues Reject Order $ Accept Order 270000 $ 0 213500 i Cost of goods sold Selling and 0 administrative expenses Net income 28900 Net Income Increase (Decrease) 270000 213500 28900 0 27600 27600 (b) Should ThreePoint Sports Inc. accept the special order? 5 pdf
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