Question
ShurShot Sports Inc. manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2014, the company reported the following operating results
ShurShot Sports Inc. manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2014, the company reported the following operating results while operating at 80% of plant capacity and producing 119,100 units. Amount Sales $4,644,900 Cost of goods sold 3,642,441 Selling and administrative expenses 476,400 Net income $526,059.
Fixed costs for the period were cost of goods sold $1,080,600, and selling and administrative expenses $238,200. In July, normally a slack manufacturing month, ShurShot Sports receives a special order for 10,500 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.51 per unit because of shipping costs but would not increase fixed costs and expenses.
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).) Note: I still have part b and c but can access to them until I get a done. Note: I will appreciate if you help me with those 2 after. Thank you so much.
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