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 120,300 units. Amount Sales $4,571,400 Cost of goods sold 3,713,667 Selling and administrative expenses 534,893 Net income $322,840 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $257,000. In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $28 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. Partially correct answer iconYour answer is partially 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 $enter revenues in dollars 0 $enter revenues in dollars 280000 $enter revenues in dollars Cost of goods sold enter the cost of goods sold in dollars 0 enter the cost of goods sold in dollars 287500 enter the cost of goods sold in dollars Selling and administrative expenses enter selling and administrative expenses in dollars 0 enter selling and administrative expenses in dollars enter selling and administrative expenses in dollars Net income $enter net income in dollars 0 $enter net income in dollars $enter net income in dollars (b) Should ThreePoint Sports Inc. accept the special order? select between Yes and No eTextbook and Media Incorrect answer iconYour answer is incorrect. What is the minimum selling price on the special order to produce net income of $5.01 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
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