Question: The Bob - Homework ... Prob 21-1B & Prob 21-2B & Prob 21-4B. This problem is NOT in your textbook. Required: below this problem Bare
The "Bob - Homework" ... Prob 21-1B & Prob 21-2B & Prob 21-4B. This problem is NOT in your textbook. Required: below this problem Bare the working papers for you to complete, save to your computer, and then submit (via Canvas) to the instructor by the due date. P21-1B Morello Inc. manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2017, the company reported the following operating results while operating at 90% of plant capacity and producing 90,000 units. Amount Per Unit Sales $4,500,000 $50 Cost of goods sold 3,060,000 Selling and administrative expenses 360.000 Net income $1.000.000 Fixed costs for the period were cost of goods sold $900,000, and selling and administrative expenses $180,000 In July, normally a slack manufacturing month, Morello receives a special order for 10,000 basketballs at $30 each from the Chinese Basketball Association (CBA). Acceptance of the order would increase variable selling and administrative expenses $0.50 per unit because of shipping costs but would not increase fixed costs and expenses. Instructions (a) Prepare an incremental analysis for the special order. (b) Should Morello Inc. accept the special order? Prob 21-1B Reject Order Accept Order Net Income Increase or Decrease 0 Revenues Cost of goods sold Selling & admin expenses Net income b) Accept
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
