Question
Sports R Us produces basketballs. Recently the local in-house team contacted them about purchasing 2,000 basketballs and has agreed to pay $18 per ball plus
Sports R Us produces basketballs. Recently the local in-house team contacted them about purchasing 2,000 basketballs and has agreed to pay $18 per ball plus $3 per ball for shipping. The current year's production is 22,000 basketballs and total capacity is 25,000 balls. The following costs pertain to the production of basketballs.
| Direct Materials | $9.20 |
| Direct Labor | $4.00 |
| VOH | $3.80 |
| FOH | $4 |
| Cost per ball | $20.64 |
| Prepare an incremental analysis. Should Sports R Us accept the special Order? Why? |
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Operational Assessment Of IT Internal Audit And IT Audit
Authors: Steve Katzman
1st Edition
0367567946, 978-0367567941
