Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 producing119,900units.

AmountSales$4,676,100Cost of goods sold3,527,059Selling and administrative expenses482,601Net income$666,440

Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $244,000.

In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for10,000basketballs at $29each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.73per unit because of shipping costs but would not increase fixed costs and expenses.

(a) & (b)

(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).)

Reject

OrderAccept

OrderNet Income

Increase

(Decrease)Revenues$$$Cost of goods soldSelling and administrative expensesNet income$$$

(b)Should ThreePoint Sports Inc. accept the special order?

No

Yes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Financial Accounting

Authors: Christopher D. Burnley

2nd Canadian Edition

1119406927, 978-1119406921

More Books

Students also viewed these Accounting questions

Question

If the person is a professor, what courses do they teach?

Answered: 1 week ago