Crane 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 120,100 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,804,000 3,484.502 448.773 $870,725 Fixed costs for the period were cost of goods sold $960.000, and selling and administrative expenses $241,000 In July, normally a slack manufacturing month, Crane 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 $0.77 per unit because of shipping costs but would not increase fixed costs and expenses.
Crane 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 120,100 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,804,000 3,484.502 448.773 $870,725 Fixed costs for the period were cost of goods sold $960.000, and selling and administrative expenses $241,000 In July, normally a slack manufacturing month, Crane 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 $0.77 per unit because of shipping costs but would not increase fixed costs and expenses.
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Transcribed Image Text:Crane 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 120,100 units.
▸
Sales
Cost of goods sold
Selling and administrative expenses
Net income
BUS-317 Topic 06 Assignment
Question 1 of 4 < >
Fixed costs for the period were cost of goods sold $960.000, and selling and administrative expenses $241,000
In July, normally a slack manufacturing month, Crane 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 $0.77 per unit
because of shipping costs but would not increase fixed costs and expenses.
Revenues
10₁
Cost of goods sold
Selling and
(a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, eg 15.25. Enter
negative amounts using either a negative sign preceding the number eg -45 or parentheses eg (45))
administrative expenses
Amount
Net income
$4,804,000
$
3,484,502
448,773
5870,725
xhtmaunchid-83a7919 20d3-4730 at 77-edodo
Reject
Order
Accept
Order
Net Income
Increase
(Decrease)
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