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Splish Inc, manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at
Splish 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: Fixed costs for the period were cost of goods sold of $1,026,000, and selling and administrative expenses of $184,680. In July, normally a slack manufacturing month, Splish receives a special order for 10,260 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, eg. 15.25 and final answers to 0 decimal places, e.g. 125.)
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