Please do not give solution in image format thanku Blue Spruce Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the companyreported the following operating results while operating at 90% of plant capacity:SalesCost of goods soldSelling and administrative expensesNet incomeIncremental revenueIncremental cost:Fixed costs for the period were cost of goods sold of $990,000, and selling and administrative expenses of $178,200.In July, normally a slack manufacturing month, Blue Spruce receives a special order for 9,900 basketballs at $32.00 each from theItalian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.75 per unitbecause of shipping costs, but it would not increase fixed costs and expenses.Variable COGSPrepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answersto O decimal places, e.g. 125.)Variable S & APrepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answersto O decimal places, e.g. 125.)Additional S & AIncremental incomeAmount$5,049,0003,465,000445,500$Blue Spruce Inc. should$1,138,500Should Blue Spruce Inc. accept the special order?Minimum selling price $Per Unit$51.0035.004.50$11.50the special order.$What is the minimum selling price on the special order to produce net income of $5.00 per ball? (Round answer to 2 decimalplaces, e.g. 15.25.)

Lets understand the basics.When special order situation arise.,management needs to make decision…

Blue Spruce Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022. reported the following operating results while operating at 90% of plant capacity: Sales Cost of goods sold Selling and administrative expenses Net income Amount $5,049,000 3,465,000 445,500 $1,138,500 Per Unit $51.00 35.00 4.50 $11.50

Blue Spruce Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022. reported the following operating results while operating at 90% of plant capacity: Sales Cost of goods sold Selling and administrative expenses Net income Amount $5,049,000 3,465,000 445,500 $1,138,500 Per Unit $51.00 35.00 4.50 $11.50

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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