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Wildhorse 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
Wildhorse 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 118,800 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,514,400 3,633,000 517,540 $363,860 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $274,000. In July, normally a slack manufacturing month, Wildhorse 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 $0.77 per unit because of shipping costs but would not increase fixed costs and expenses. * Question 1 (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e.g. 15.25. Enter negati 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 (b) Should Wildhorse Sports Inc. accept the special order
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