Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of...

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Accounting

Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020, the company reported the following operating results while operating at 90% of plant capacity:
Amount Per Unit
Sales $5,232,600 $51.00
Cost of goods sold 3,591,000 35.00
Selling and administrative expenses 451,440 4.40
Net income $1,190,160 $11.60
Fixed costs for the period were cost of goods sold of $1,026,000, and selling and administrative expenses of $184,680. In July, normally a slack manufacturing month, Pro Sports receives a special order for 10,260 basketballs at $32 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.50 per unit because of shipping costs, but it would not increase fixed costs and expenses.

(a)

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Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 125.)
Incremental revenue $

Incremental cost:
Variable COGS $

Variable S & A

Additional S & A

Incremental income $

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(b)

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Should Pro Sports Inc. accept the special order?
Pro Sports Inc. should

acceptreject

the special order.

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(c)

What is the minimum selling price on the special order to produce net income of $5.00 per ball? (Round answer to the 2 decimal places, e.g. 15.25.)
Minimum selling price $

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