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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
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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(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 Crane Sports Inc. accept the special order? $ Accept Order $ $ Net Income Increase (Decrease)
Transcribed Image Text:(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 Crane Sports Inc. accept the special order? $ Accept Order $ $ Net Income Increase (Decrease)
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.
Transcribed Image Text: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.
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