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)

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• Correct Answer

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Your 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 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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(c)

What is the minimum selling price on the special order to produce net income of $5.08 per ball? (Round answer to 2 decimal places, e.g. 15.25.)

Minimum selling price

$enter the minimum selling price in dollars rounded to 2 decimal places

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