Whispering Winds Inc. manufactures basketballs for professional basketball associations. For the first six months of...
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Accounting
Whispering Winds 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: Amount Per Unit Sales $4,039,200 $51.00 Cost of goods sold 2,692,800 34.00 Selling and administrative expenses 277,200 3.50 Net income $1,069,200 $13.50 Fixed costs for the period were cost of goods sold of $792,000, and selling and administrative expenses of $142,560. In July, normally a slack manufacturing month, Whispering Winds receives a special order for 7,920 basketballs at $31.00 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 revenue $enter a dollar amount Incremental cost: Variable COGS $enter a dollar amount Variable S & A enter a dollar amount Additional S & A enter a dollar amount enter a subtotal of the three previous amounts Incremental income $enter a total amount Question Part Score--/5 Should Whispering Winds Inc. accept the special order? Whispering Winds Inc. should select an option the special order. Question Part Score--/1 What is the minimum selling price on the special order to produce net income of $6.00 per ball? (Round answer to 2 decimal places, e.g. 15.25.) Minimum selling price $enter the minimum selling price in dollars rounded to 2 decimal places
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