Crane 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 119,400 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,776,000 3,509,190 513,516 $753,294 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $258,000. In July, normally a slack manufacturing month, Crane Sports receives a special order for 10,000 basketballs at $27 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.

Crane 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 119,400 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,776,000 3,509,190 513,516 $753,294 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $258,000. In July, normally a slack manufacturing month, Crane Sports receives a special order for 10,000 basketballs at $27 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.

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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