Smith Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity:

		Amount		Per Unit
Sales		$5,040,000		$50.00
Cost of goods sold		3,528,000		35.00
Selling and administrative expenses		453,600		4.50
Net income		$1,058,400		$10.50

Fixed costs for the period were cost of goods sold of $1,008,000, and selling and administrative expenses of $181,440. In July, normally a slack manufacturing month, Smith receives a special order for 10,080 basketballs at $32.00 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.50 per unit because of shipping costs, but it would not increase fixed costs and expenses.

Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)

Incremental revenue				$enter a dollar amount
Incremental cost:
Variable COGS		$enter a dollar amount
Variable S & A		enter a dollar amount
Additional S & A		enter a dollar amount		enter a subtotal of the three previous amounts
Incremental income				$enter a total amount

Question Part Score

--/5

Should Smith Inc. accept the special order?

Question Part Score

--/1

What is the minimum selling price on the special order to produce net income of $6.00 per ball? (Round answer to 2 decimal places, e.g. 15.25.)

Minimum selling price

$enter the minimum selling price in dollars rounded to 2 decimal places