Question: Score Inc manufactures basketballs The company s forecasted income statement for
Score, Inc. manufactures basketballs. The company’s forecasted income statement for the year, before any special orders, is as follows:
Fixed costs included in the forecasted income statement are $4,000,000 in manufacturing cost of goods sold and $400,000 in selling expenses. A new client placed a special order with Score, offering to buy 100,000 basketballs for $6 each. The variable selling expenses are commissions on sales that will not be incurred on the special order. Assuming that Score has sufficient capacity to manufacture 100,000 more basketballs, by what amount would differential income increase (decrease) as a result of accepting the special order?
Answer to relevant QuestionsClassify the following as direct materials, direct labor, factory overhead, or selling and administrative expense. a. Steel used in an overhead door plant. b. Cloth used in a shirt factory. c. Fiberglass used by a sailboat ...Redwood Industries needs 20,000 units of a certain part to use in its production cycle. The following information is available: Cost to Redwood to make the part: Direct materials ...Columbia Products Inc. has two divisions, Salem and Seaside. For the month ended March 31, Salem had sales and variable costs of $500,000 and $225,000, respectively, and Seaside had sales and variable costs of $800,000 and ...Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement ...Bryce Publishing Co. prepares income statements segmented by divisions, but the chief operating officer is not certain about how the company is actually performing. Financial data for the year follow The Electronic ...
Post your question