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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
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 120,300 units Amount Sales $4,571.400 Cost of goods sold 3,713,667 Selling and administrative expenses 534,893 Net income $322,840 Fixed costs for the perlod were cost of goods sold $960,000, and selling and administrative expenses $257,000. In July, normallya slack manufacturing month, ThreePoint Sports recelves 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 $0.75 per unit because of shipping costs but would not increase foxed costs and expenses (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, eg 15.25. Enter negotive amounts using either a negative sign preceding the number e 45 or parentheses eg. (45)) Net Income Increase Accept Order Reject (Decrease) Order Revenues Cost of goods sold Selling and administrative expenses
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