Shurshot sports inc manufactures basketballs for the

Reference no: EM13579849

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 120,400 units.

Sales $4,936,400 Cost of goods sold 3,615,724 Selling and administrative expenses 452,704 Net income $867,972

Fixed costs for the period were cost of goods sold $1,080,100, and selling and administrative expenses $226,352.

In July, normally a slack manufacturing month, ShurShot Sports receives a special order for 10,900 basketballs at $28 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.48 per unit because of shipping costs but would not increase fixed costs and expenses.

Prepare an incremental analysis for the special order using this format:

	Reject Order	Accept Order	Net Income Increase (Decrease)
Revenues
Cost of goods sold
Selling and administrative expenses
Net income

Reference no: EM13579849

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