Reference no: EM132620049
Question - Bramble 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 118,800 units.
Amount Sales $4,514,400
Cost of goods sold 3,560,532
Selling and administrative expenses 468,164
Net income$485,704
Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $227,000.
In July, normally a slack manufacturing month, Bramble 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 $0.73 per unit because of shipping costs but would not increase fixed costs and expenses.
Required - Display an incremental analysis for the special order.
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