Prepare an incremental analysis for the special order

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Reference no: EM132955407

Sandhill Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2022, the company reported the following operating results while operating at 80% of plant capacity and producing 120,400 units.

Amount

Sales$4,816,000

Cost of goods sold3,700,304

Selling and administrative expenses492,084

Net income$623,612

Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $226,000.

In July, normally a slack manufacturing month, Sandhill 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.

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

Reference no: EM132955407

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