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Zulu sport inc. manufacturers basketballs for womens national basketball association (WNBA). For the first 6 months of 2020, the company reported the following operating results
Zulu sport inc. manufacturers basketballs for 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 production 120,000 units. . Amount Sales 4,800,000 Cost of goods sold 3,600,000 Selling and administrative expenses 405,000 Net income. 795,000 Fixed costs for the period were costs of goods sold $960,000, and selling and administrative expenses $225,000 In July, normally a slack manufacturing month, Zips sports received a special order for 10,000 basketballs at $28 dollars each from Greta basketball association. Acceptance for the order would increase variable selling & administrative expenses $0.75 per unit because of shipping costs but would not increase fixed cost and expenses Prepare an incremental analysis for the special order Should Zulu sports inc accept the special order , explain What is the minimum seeking price on the special order to provide net income of $5.00 per ball What non-financial factors should the management consider in making its decision
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