Wildhorse 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 119,900 units. Amount $4,676,100 Sales Cost of goods sold 3,569,024 Selling and administrative expenses 443,437 Net income $663,639 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $248,000. In July, normally a slack manufacturing month, Wildhorse Sports receives a special order for 10,000 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.76 per unit because of shipping costs but would not increase fixed costs and expenses. (a) & (b) (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, eg. 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 $ Accept Order LA Net Income Increase (Decrease)
Wildhorse 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 119,900 units. Amount $4,676,100 Sales Cost of goods sold 3,569,024 Selling and administrative expenses 443,437 Net income $663,639 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $248,000. In July, normally a slack manufacturing month, Wildhorse Sports receives a special order for 10,000 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.76 per unit because of shipping costs but would not increase fixed costs and expenses. (a) & (b) (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, eg. 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 $ Accept Order LA Net Income Increase (Decrease)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wildhorse 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 119,900 units.
Amount
$4,676,100
Sales
Cost of goods sold
3,569,024
Selling and administrative expenses
443,437
Net income
$663,639
Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $248,000.
In July, normally a slack manufacturing month, Wildhorse Sports receives a special order for 10,000 basketballs at $28 each from the
Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.76 per
unit because of shipping costs but would not increase fixed costs and expenses.
(a) & (b)
(a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, eg. 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
$
Accept
Order
LA
Net Income
Increase
(Decrease)
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