Oriole hs of 2022. Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first the company reported the following operating results while operating at 80% of plant capacity and producing 120,100 s. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,804,000 3,503,718 447,783 $852,499 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $228,000. In July, normally a slack manufacturing month, Oriole 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.
Oriole hs of 2022. Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first the company reported the following operating results while operating at 80% of plant capacity and producing 120,100 s. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,804,000 3,503,718 447,783 $852,499 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $228,000. In July, normally a slack manufacturing month, Oriole 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting
Transcribed Image Text:Oriole Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first
the company reported the following operating results while operating at 80% of plant capacity and producing 120,100.ts.
Sales
Cost of goods sold
Selling and administrative expenses
Net income
Amount:
$4,804,000
3,503,718
447,783
$852,499
hs of 2022,
Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $228,000.
In July, normally a slack manufacturing month, Oriole 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:(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 Oriole Sports Inc. accept the special order?
$
Accept
Order
Net Income
Increase
(Decrease)
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