The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 398 Weeks Ago, 3 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
P7-1B Haslett Inc. manufactures basketballs for the National Basketball Association (NBA). For the first 6 months of 2011, the company reported the following operating re- sults while operating at 90% of plant  capacity.
Â
Amount          Per Unit
Â
|
Sales |
$4,500,000 |
 |
 |
$50 |
 |
|
Cost of goods sold |
3,150,000 |
 |
 |
35 |
 |
|
Selling and administrative expenses |
360,000 |
 |
 |
4 |
 |
|
Net income |
$Â Â 990,000 |
 |
 |
$11 |
 |
Â
                                              ![]()
Â
Fixed costs for the period were: cost of goods sold $900,000, and selling and administra- tive expenses $135,000.
In July, normally a slack manufacturing month, Haslett receives a special order for 9,000 basketballs at $32 each from the European Basketball Association (EBA). Accep- tance 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.
Â
Â
Instructions
(a)Â Â Prepare an incremental analysis for the special order.
(b)Â Â Should Haslett Inc. accept the special order?
(c)Â Â Â What is the minimum selling price on the special order to produce net income of
$5.00 per ball?
(d)Â Â What nonfinancial factors should management consider in making its decision?
Â
Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------.Pl-----------eas-----------e p-----------ing----------- me----------- on-----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be-----------