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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
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 118,600 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,506,800 3,475,506 498,060 $533,234 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $249,000. 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) & (b) Your answer is correct. (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues $ $ 280000 $ 280000 Cost of goods sold -212100 i -212100 Selling and administrative expenses -28300 i -28300 Net income $ i $ 39600 $ 39600 (b) Should ThreePoint Sports Inc. accept the special order? Yes (b) Should ThreePoint Sports Inc. accept the special order? Yes e Textbook and Media Attempts: 1 of 5 used (c) What is the minimum selling price on the special order to produce net income of $5.16 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $ e Textbook and Media Save for Later Attempts: 0 of 5 used Submit
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