Question

RESOURCES Chapter 20 CALCULATOR Problem 20-1A ThreePoint Soorts incantares baskets for the Women's National Basketball Association (WNBA). For the first 6 months of 2017, the company reported the following operating at of plant capacity and producing 120,00 in t he Cost of goods sold Selling and administrative expenses Net income 54.571.400 3,713.667 534,893 5322,840 Fixed costs for the period were cost of goods sold 1960,000, and sing and In July, normally a slack manufacturing month, Thein Sports receive a expenses $257.000 calorier for 10.000 a $25 from the Grea t G a the (a) Prepare an incremental analysis for the special order. (Round a permit computation de ces 1825. Ber e Net Income Accept Order Revenues Cost of goods sold

Answer 1

a
	Reject order	Accept order	Net income increase(decrease)
Revenues	0	280000	280000
Cost of goods sold	0	-228900	-228900
Selling and administrative expenses	0	-30600	-30600
Net income	0	20500	20500
Workings:
Per unit:
Cost of goods sold	22.89	=(3713667-960000)/120300
Selling and administrative expenses	2.31	=(534893-257000)/120300
Revenues	280000	=10000*28
Cost of goods sold	228900	=10000*22.89
Selling and administrative expenses	30600	=10000*(2.31+0.75)