Mathematics, 18.06.2021 02:40 WendigoMeow
Sandhill Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at 80% of plant capacity and producing 120,300 units.
Amount
Sales
$4,571,400
Cost of goods sold
3,713,667
Selling and administrative expenses
534,893
Net income
$322,840
Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $257,000.
In July, normally a slack manufacturing month, Sandhill receives a special order for 10,000 basketballs at $28 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.
(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).)
Answers: 1
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