Problem 7-1A
ShurShot Sports Inc. manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2014, the company reported the following operating results while operating at 80% of plant capacity and producing 119,600 units.
Amount
Sales
$4,664,400
Cost of goods sold
3,750,272
Selling and administrative expenses
387,504
Net income
$526,624
Fixed costs for the period were cost of goods sold $1,080,800, and selling and administrative expenses $193,752.  In July, normally a slack manufacturing month, ShurShot Sports receives a special order for 10,700 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.50 per unit because of shipping costs but would not increase fixed costs and expenses.
(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).)
Reject Order
Accept Order
Net Income Increase (Decrease)
Revenues
$
$
$
Cost of goods sold
Selling and administrative expenses
Net income
$
$
$