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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 operating

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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 operating results while operating at 80% of plant capacity and producing 120,000 units Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,680,000 3,582,000 513,400 $584,600 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $271,000. 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 $0.75 per unit because of shipping costs but would not increase fixed 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 negative amounts using either a negative sign preceding the number eg.-45 or parentheses es. (451) Reject Order Accept Order Net Income Increase (Decrease) a $ $ $ Revenues 290000 290000 0 -218500 -218500 Cost of goods sold Selling and administrative expenses -27700 -27700 $ Net income 0 $ 43800 43800 (b) Should ThreePoint Sports Inc. accept the special order? Ves v What is the minimum selling price on the special order to produce net income of $5.00 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit

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