SplishBrothers Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,680,000 3,582,000 513,400 $584,600 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $271.000. In July, normally a slack manufacturing month, SplishBrothers Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA), Acceptance of the order would increase variable selling and administrative expenses $0.75 per unit because of shipping costs but would not increase fixed costs and expenses.

SplishBrothers Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,000 units. Sales Cost of goods sold Selling and administrative expenses Net income Amount $4,680,000 3,582,000 513,400 $584,600 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $271.000. In July, normally a slack manufacturing month, SplishBrothers Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA), Acceptance of the order would increase variable selling and administrative expenses $0.75 per unit because of shipping costs but would not increase fixed costs and expenses.

Name: (a) & (b)(a) Prepare an incremental analysis for the special order. (
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Description: (a) & (b)(a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e.g. 15.25. Enternegative amounts using either a negative sign preceding the number eg. -45 or parentheses e.g. (45).)RevenuesC

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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