Metlock Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the...
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Metlock Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity: Sales Cost of goods sold Selling and administrative expenses Net income Amount $3,870,000 2,709,000 301,860 $859.140 Per Unit $50.00 35.00 3.90 $11.10 Fixed costs for the period were cost of goods sold of $774,000, and selling and administrative expenses of $139,320. In July, normally a slack manufacturing month, Metlock receives a special order for 7.740 basketballs at $30.00 each from the Italian Raskethall Association Accentine the order would increase variable selline and administrative evnenses hy $0 75 ner unit hecause of Show all Net income $859,140 (a) $11.10 Fixed costs for the period were cost of goods sold of $774,000, and selling and administrative expenses of $139,320. In July, normally a slack manufacturing month, Metlock receives a special order for 7,740 basketballs at $30.00 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.75 per unit because of shipping costs, but it would not increase fixed costs and expenses. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125.) Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to U decimal places, e.g. 125.) Incremental revenue Incremental cost: Variable COGS Variable S & A Additional S & A Incremental income 580500 $ 232200 Metlock Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity: Sales Cost of goods sold Selling and administrative expenses Net income Amount $3,870,000 2,709,000 301,860 $859.140 Per Unit $50.00 35.00 3.90 $11.10 Fixed costs for the period were cost of goods sold of $774,000, and selling and administrative expenses of $139,320. In July, normally a slack manufacturing month, Metlock receives a special order for 7.740 basketballs at $30.00 each from the Italian Raskethall Association Accentine the order would increase variable selline and administrative evnenses hy $0 75 ner unit hecause of Show all Net income $859,140 (a) $11.10 Fixed costs for the period were cost of goods sold of $774,000, and selling and administrative expenses of $139,320. In July, normally a slack manufacturing month, Metlock receives a special order for 7,740 basketballs at $30.00 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.75 per unit because of shipping costs, but it would not increase fixed costs and expenses. Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to O decimal places, e.g. 125.) Prepare an incremental analysis for the special order. (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to U decimal places, e.g. 125.) Incremental revenue Incremental cost: Variable COGS Variable S & A Additional S & A Incremental income 580500 $ 232200
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Answer rating: 100% (QA)
Revenue will be 7740 30 232000 Cost of Good Sold 2709000 774000 77400 7740 193500 Selli... View the full answer
Related Book For
Managerial Accounting Tools for business decision making
ISBN: 978-0470477144
5th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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