Question
ThreePoint Sports Inc. manufactures basketballs for the Womens National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating
ThreePoint Sports Inc. manufactures basketballs for the Womens 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 119,500 units.
Amount | |||
Sales | $4,660,500 | ||
Cost of goods sold | 3,675,040 | ||
Selling and administrative expenses | 516,825 | ||
Net income | $468,635 |
Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $236,000. In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $27 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.
(a) & (b)
Correct answer iconYour answer is correct.
(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 Order | Accept Order | Net Income Increase (Decrease) | |||||
Revenues | $ | $ | $ | ||||
Cost of goods sold | |||||||
Selling and administrative expenses | |||||||
Net income | $ | $ | $ |
*******What is the minimum selling price on the special order to produce net income of $5.15 per ball? (Round answer to 2 decimal places, e.g. 15.25.)**************** (NEED HELP WITH THIS PLEASE)
Minimum selling price | $ |
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