Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $

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

The Impact Of SOA On IT Auditing From Auditors Point Of View

Authors: Farida Chotkan

1st Edition

3843363048, 978-3843363044

More Books

Students also viewed these Accounting questions

Question

9. Identify the woman as the temptress stage in Basic Instinct.

Answered: 1 week ago

Question

2. Identify the purpose of your speech

Answered: 1 week ago