ShurShot Sports Inc. manufactures basketballs for the National Basketball Associ

Question

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 119,400 units.

Amount Sales $4,776,000 Cost of goods sold 3,760,230 Selling and administrative expenses 403,572 Net income $612,198
Fixed costs for the period were cost of goods sold $1,079,700, and selling and administrative expenses $201,786.

   In July, normally a slack manufacturing month, ShurShot Sports receives a special order for 10,400 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.49 per unit because of shipping costs but would not increase fixed costs and expenses. 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 119,400 units.

Amount Sales $4,776,000 Cost of goods sold 3,760,230 Selling and administrative expenses 403,572 Net income $612,198
Fixed costs for the period were cost of goods sold $1,079,700, and selling and administrative expenses $201,786.

   In July, normally a slack manufacturing month, ShurShot Sports receives a special order for 10,400 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.49 per unit because of shipping costs but would not increase fixed costs and expenses. 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 119,400 units.

Amount Sales $4,776,000 Cost of goods sold 3,760,230 Selling and administrative expenses 403,572 Net income $612,198
Fixed costs for the period were cost of goods sold $1,079,700, and selling and administrative expenses $201,786.

   In July, normally a slack manufacturing month, ShurShot Sports receives a special order for 10,400 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.49 per unit because of shipping costs but would not increase fixed costs and expenses.

Explanation / Answer

if rejects if accepts incremental

revenue 4776000 5077600 301600

cogs 3760230 3760230 _

selling 403572 408668 5096

net inc 612198 908702 296504

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