Question: Problems: Set A Problems: Set A 734A Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2016, the company

 Problems: Set A Problems: Set A 734A Pro Sports Inc. manufactures

Problems: Set A Problems: Set A 734A Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2016, the company reported the following operating results while operating at 90% of plant capacity: (S Sales Cost of goods sold Selling and administrative expenses Amount $4,500,000 3,150,000 Per Unit $50.00 35.00 4.00 360,000 Net income $990,000 Fixed costs for the period were cost of goods sold of $900,000, and selling and administrative expenses of $162,000. In July, normally a slack manufacturing month, Pro Sports receives a special order for 9,000 basketballs at $30 eaclh from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.50 per unit because of shipping costs, but it would not increase fixed costs and expenses. Instructions (a) Prepare an incremental analysis for the special order. (b) Should Pro Sports Inc. accept the special order? (c) What is the minimum selling price on the special order to produce net income of $5.00 per ball dWhat non-financial factors should management consider in making its decision

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