Sheridan 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 of plant capacity and producing 119, 400 units. Fixed costs for the period were cost of goods sold, and selling and administrative expenses. In July, normally a slack manufacturing month, Sheridan receives a special order for 10, 000 basketballs at each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses per unit because of shipping costs but would not increase fixed costs and expenses. (a) (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. or parentheses e. g. (45).) (b) Should Sheridan Inc, accept the special order?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Sheridan 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 of plant capacity and producing 119, 400 units. Fixed costs for the period were cost of goods sold, and selling and administrative expenses. In July, normally a slack manufacturing month, Sheridan receives a special order for 10, 000 basketballs at each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses per unit because of shipping costs but would not increase fixed costs and expenses. (a) (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. or parentheses e. g. (45).) (b) Should Sheridan Inc, accept the special order?
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