Any help would be appreciated! Thanks! ShurShot Sports Inc. manufactures basketb

Question

Any help would be appreciated! Thanks!

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 119,500 units.

Amount Sales $4,541,000 Cost of goods sold 3,654,830 Selling and administrative expenses 494,730 Net income $391,440
Fixed costs for the period were cost of goods sold $1,080,800, and selling and administrative expenses $247,365.

   In July, normally a slack manufacturing month, ShurShot Sports receives a special order for 10,400 basketballs at $30 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.51 per unit because of shipping costs but would not increase fixed costs and expenses.

Explanation / Answer

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