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ShurShot Sports Inc. manufactures basketballs for National Basketball Association (NBA). For first 6 months of 2014, the company reported the subsequent operating results while operating at 80 percent of plant capacity and producing 119,700 units. Amount Sales $4,788,000 Cost of goods sold 3,651,856 Selling and administrative expenses 454,860 Net income $681,284 Fixed costs for period were cost of goods sold $1,080,700, and selling and administrative expenses $227,430. In July, usually a slack manufacturing month, ShurShot Sports gets a special order for 10,600 basketballs at $29 each from Greek Basketball Association (GBA). Acceptance of order would increase variable selling and administrative expenses $0.49 per unit because of shipping costs but would not increase fixed costs and expenses. Create an incremental analysis for the special order.
Reject Order Accept Order Net Income / Increase(Decrease) Revenues $ $ $ Cost of goods sold Selling and administrative expenses Net income $ $ $
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