User Account

All Pages

What is the minimum selling price on the special order

Assignment Help Accounting Basics
Reference no: EM132073611

Question - ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2017, the company reported the following operating results while operating at 80% of plant capacity and producing 119,100 units.

Amount

Sales

$ 4,525,800

Cost of goods sold

3,519,459

Selling and administrative expenses

412,841

Net income

$ 593,500

Fixed costs for the period were cost of goods sold $ 960,000, and selling and administrative expenses $ 233,000.

In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $ 29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $ 0.76 per unit because of shipping costs but would not increase fixed costs and expenses.

(a) Prepare an incremental analysis for the special order.

(b) Should ThreePoint Sports Inc. accept the special order?

(c) What is the minimum selling price on the special order to produce net income of $ 5.11 per ball?

Reference no: EM132073611

Questions Cloud

Differences between second-party and third-party payment : Explain the systematic risk principle and how it relates to beta. Discuss the differences between second-party payment and third-party payment.
Compute the margin of safety in units : Variable costs are $6 per unit, and fixed costs are $5,000 per month. If Divine expects to sell 1,500 units, compute the margin of safety in units
How women went from housewives and supporting the family : How did the United State evolve from an agrarianbased economy after the Civil War to an industrial powerhouse just prior to the U.S. entry to WWI?
Does the advice make sense : If you are a risk-averse investor and your financial advisor told you that in order to lessen your portfolio risk you should not invest in gold mining stocks.
What is the minimum selling price on the special order : Fixed costs for the period were cost of goods sold $ 960,000, and selling and administrative expenses $ 233,000. What is the minimum selling price
Explain economic principles : EC0100 - Summarize the different types of market structures and the role of government in economics.
Provide a description of site cleaning : Please provide a description of site cleaning including example infections commonly found and the tools and process used to find it.
Determine what is the percentage up movement : Right now, the risk free rate is 4.5% and the stock price for a risky tech startup is $325, with a volatility of 32%. Using the binomial tree model.
How do you evaluate the workers'' appraisal in this case : a) How do you evaluate the workers' appraisal in this case?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What depreciation method does amazon use

What depreciation method does Amazon use for property and equipment? What is the range of useful lives for buildings and for fixtures and equipment? Do these useful lives make sense?

  Divided between common and preferred stock

If the dividends on preferred stock are one year in arrears (in addition to the current year), how will the total dividend be divided between the common and preferred stock?

  Prepare the journal entries for the three years

On January 1, 2015, Janine Company sold real estate that cost $95,114 to Conaway Company for $120,000. Prepare the journal entries for the three years

  Analyze the process of capturing processing and protecting

analyze the process of capturing processing and protecting information to determine the single biggest challenge to the

  Describe any information that may help alliance reduce costs

Describe any information that may help Alliance reduce costs while providing better service. Propose a new approach that could be used by Alliance.

  Determine the incremental net income or net loss

Prepare an analysis below to determine the incremental net income or net loss that Baby Center would recognize if they accept this special order.

  Determine danny and mary taxable income

Your firm has clients named Danny and Mary. Determine Danny and Mary's taxable income

  Computing share price-dividend discount model

Colgate-Palmolive Company has just paid an annual dividend of $0.96. Analysts are predicting an 11% per year growth rate in earnings over the next five years.

  Construct a probability table for this problem

Eastern Airlines knows that 20 % of its customers fly first class, 20 % fly business class, Construct a probability table for this problem

  Determine the current balance of retained earnings

The following information has been taken from the ledger accounts of Sampras Corporation. Determine the current balance of retained earnings.

  Calculate the contribution margin percentage

The contribution margin of an item is often a key piece of data used in deciding, Calculate the contribution margin percentage for your Adam sensor product

  Appropriate code letter in the space

Problem 1: Using the code letters below, indicate how each of the items listed would be handled in preparing a bank reconciliation. Enter the appropriate code letter in the space to the left of each item.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd