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 118,800 units.

AmountSales$4,514,400Cost of goods sold3,633,000Selling and administrative expenses517,540Net income$363,860

Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $274,000.

In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.77 per unit because of shipping costs but would not increase fixed costs and expenses.

Part 1

(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$enter revenues in dollars $enter revenues in dollars $enter revenues in dollars Cost of goods soldenter the cost of goods sold in dollarsenter the cost of goods sold in dollarsenter the cost of goods sold in dollarsSelling and administrative expensesenter selling and administrative expenses in dollarsenter selling and administrative expenses in dollarsenter selling and administrative expenses in dollarsNet income$enter net income in dollars $enter net income in dollars $enter net income in dollars

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

select between Yes and NoYesNo YesNo

eTextbook and Media

Part 2

What is the minimum selling price on the special order to produce net income of $5.11 per ball? (Round answer to 2 decimal places, e.g. 15.25.)

Minimum selling price$enter the minimum selling price rounded to 2 decimal places