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What us the Minimum Selling Price on the special order to produce net income of $5.19 per ball? Sheridan Inc. manufactures basketballs for the Women's
What us the Minimum Selling Price on the special order to produce net income of $5.19 per ball?
Sheridan Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022 , the company reported the following operating results while operating at 80% of plant capacity and producing 119,800 units. Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $225,000. In July, normally a slack manufacturing month, Sheridan 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 $0.74 per unit because of shipping costs but would not increase fixed costs and expenses. Your 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).) (b) Should Sheridan Inc. accept the special order? What is the minimum selling price on the special order to produce net income of $5.19 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $Step by Step Solution
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