Posted: June 13th, 2022
Problem 7-1A (Part Level Submission)
ShurShot Sports Inc. manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2014, the company reported the following operating results while operating at 80% of plant capacity and producing 119,800 units.
Cost of goods sold
Selling and administrative expenses
Net income $748,546
Fixed costs for the period were cost of goods sold $1,080,800, and selling and administrative expenses $298,302.
In July, normally a slack manufacturing month, ShurShot Sports receives a special order for 10,800 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.50 per unit because of shipping costs but would not increase fixed costs and expenses.
.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).)
Order Net Income
Revenues $ $ $
Cost of goods sold Selling and administrative expenses Net income $ $ $
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