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Wildhorse Sports Inc. manufactures basketballs for the Womens National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating

Wildhorse Sports Inc. manufactures basketballs for the Womens 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 119,900 units.

Amount

Sales

$4,676,100

Cost of goods sold

3,569,024

Selling and administrative expenses

443,437

Net income

$663,639

Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $248,000. In July, normally a slack manufacturing month, Wildhorse 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 $0.76 per unit because of shipping costs but would not increase fixed costs and expenses.

(a) & (b)

(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 a dollar amount

$enter a dollar amount

$enter a dollar amount

Cost of goods sold

enter a dollar amount

enter a dollar amount

enter a dollar amount

Selling and administrative expenses

enter a dollar amount

enter a dollar amount

enter a dollar amount

Net income

$enter a total net income amount

$enter a total net income amount

$enter a total net income amount

(b) Should Wildhorse Sports Inc. accept the special order? select an option NoYes

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