Blossom Sports 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 119,900 units. Sales Cost of goods sold Selling and administrative expenses Amount $4,676,100 3,527,059 482,601

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Blossom Sports 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 119,900 units.
Sales
Cost of goods sold
Selling and administrative expenses
Net income
Amount
$4,676,100
3,527,059
482,601
$666,440
Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $244,000.
In July, normally a slack manufacturing month, Blossom 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 $0.73 per
unit because of shipping costs but would not increase fixed costs and expenses.
Transcribed Image Text:Blossom Sports 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 119,900 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,676,100 3,527,059 482,601 $666,440 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $244,000. In July, normally a slack manufacturing month, Blossom 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 $0.73 per unit because of shipping costs but would not increase fixed costs and expenses.
(a) & (b)
(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).)
Revenues
Cost of goods sold
Selling and administrative
expenses
Net income:
$
Reject
Order
(b) Should Blossom Sports Inc. accept the special order?
$
Accept
Order
$
Net Income
Increase
(Decrease)
Transcribed Image Text:(a) & (b) (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).) Revenues Cost of goods sold Selling and administrative expenses Net income: $ Reject Order (b) Should Blossom Sports Inc. accept the special order? $ Accept Order $ Net Income Increase (Decrease)
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