Vaughn Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022,...

50.1K

Verified Solution

Question

Accounting

Vaughn Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity:Fixed costs for the period were cost of goods sold of $864,000, and selling and administrative expenses of $155,520.Type here to search12\deg C Sunny ^ O (4AmountPer UnitSales$4,406,400$51.00Cost of goods sold2,937,60034.00Selling and administrative expenses328,3203.80Net income$1,140,480$13.20Fixed costs for the period were cost of goods sold of $864,000, and selling and administrative expenses of $155,520.In July, normally a slack manufacturing month, Vaughn receives a special order for 8,640 basketballs at $32.00 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $1.00 per unit because of shipping costs, but it would not increase fixed costs and expenses.Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g.15.25 and final answers to 0 decimal places, e.g.125.)Incremental revenueIncremental cost:Variable COGS$Variable S & AAdditional S & AIncremental income$

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students