Reference no: EM13592900

Problem 26-1A 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 90% of plant capacity and producing 157,410 units. Amount Sales revenue $7,713,090 Cost of goods sold 4,514,892 Selling and administrative expenses 474,582 Net income $2,723,616 Fixed costs for the period were cost of goods sold $959,000, and selling and administrative expenses $224,300. In July, normally a slack manufacturing month, ShurShot Sports receives a special order for 12,800 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.37 per unit because of shipping costs but would not increase fixed costs and expenses. Prepare an incremental analysis for the special order. Reject Accept Net Income Order Order increases Revenues $ $ $ Cost of goods sold Selling and administrative expenses Net income Should ShurShot Sports Inc. accept the special order? What is the minimum selling price on the special order to produce net income of $6.66 per ball? Minimum selling price $ per unit.