ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first...
80.2K
Verified Solution
Question
Accounting
ThreePoint Sports Inc. manufactures basketballs for the Women's 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 producing 120,000 units. Sales Cost of goods sold Selling and administrative Net income expenses Amount $4,680,000 3,582,000 513,400 $584,000 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $271,000. In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.75 per unit because of shipping costs but would not increase fixed costs and expenses.
ThreePoint Sports inc. manufactures basketballs for the Women's 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 producing 120,000 units. Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $271,000. In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketbali Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.75 per unit because of shipping costs but would not increase fixed costs and expenses. (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).) (b) Should ThreePoint Sports Inc accept the special order? What is the minimum selling price on the special order to produce net income of $5.00 per ball? (Round answer to 2 decimal places, e.8. 15.25.) Minimumselling price
ThreePoint Sports Inc. manufactures basketballs for the Women's 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 producing 120,000 units. Sales Cost of goods sold Selling and administrative Net income expenses Amount $4,680,000 3,582,000 513,400 $584,000 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $271,000. In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.75 per unit because of shipping costs but would not increase fixed costs and expenses.



Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.