Sports Inc. manufactures basketballs for the National Basketball Association
(NBA). For the first 6 months of 2014, the company reported the following
operating results while operating at 80% of plant capacity and producing
of goods sold 3,686,450
and administrative expenses 596,604
costs for the period were cost of goods sold $1,080,800, and selling and
administrative expenses $298,302.
July, normally a slack manufacturing month, ShurShot Sports receives a special
order for 10,800 basketballs at $28 each from the Greek Basketball Association
(GBA). Acceptance of the order would increase variable selling and administrative
expenses $0.50 per unit because of shipping costs but would not increase fixed
costs and expenses.
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).)
$ $ $
of goods sold
and administrative expenses
income $ $ $
There are no reviews yet.