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Problem 7-1A_ShurShot Sports Inc._Accept or reject the order




Question;Problem 7-1A (Part Level Submission);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;119,800 units.;Amount;Sales $5,031,600;Cost;of goods sold 3,686,450;Selling;and administrative expenses 596,604;Net;income $748,546;Fixed;costs for the period were cost of goods sold $1,080,800, and selling and;administrative expenses $298,302.;In;July, normally a slack manufacturing month, ShurShot Sports receives a special;order for 10,800 basketballs at $28 each from the Greek Basketball Association;(GBA). Acceptance of the order would increase variable selling and administrative;expenses $0.50 per unit because of shipping costs but would not increase fixed;costs and expenses.;Prepare an incremental analysis for the special;order. (Round all per unit computations to 2 decimal places, e.g. 15.25. Enter;negative amounts using either a negative sign preceding the number e.g. -45 or;parentheses e.g. (45).);Reject;Order;Accept;Order;Net Income;Increase;(Decrease);Revenues;$ $ $;Cost;of goods sold;Selling;and administrative expenses;Net;income $ $ $


Paper#37371 | Written in 18-Jul-2015

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