(a) & (b) (c) ThreePoint Sports Inc. manufactures basketballs for the Women’s Na

Question

(a) & (b)

(c)

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 119,400 units.
Amount Sales $4,537,200 Cost of goods sold 3,570,084 Selling and administrative expenses 487,442 Net income $479,674
Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $257,000.

In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $30 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.77 per unit because of shipping costs but would not increase fixed costs and expenses.

Explanation / Answer

Answer : Answer A & B is right

Answer C

Minimum selleing price will be $ 29.59.

Particulars Amount ($) Ball will be Manufacture (a) 10000 Expenses Cost of goods sold (b) 218600 Selling and administrative expenses (c) 27000 Net Income required (d) = 5.03*(a) 50300 Minimum Revenue will be (e) = (b+c+d) 295900 Minimum selling price per ball (f) = (e)/(a) 29.59

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