Business, 25.03.2020 06:36 Jbutler15

ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2017, the company reported the following operating results while operating at 80% of plant capacity and producing 119,100 units.

Amount Sales $4,525,800
Cost of goods sold 3,519,459
Selling and administrative expenses 412,841
Net income $593,500

Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $233,000.
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 $0.76 per unit because of shipping costs but would not increase fixed costs and expenses.
(a) Prepare an incremental analysis for the special order.
(b) Should ThreePoint Sports Inc. accept the special order?

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ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNB...

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