Twifty Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2017, the company reported the following operating results while operating at 80% of plant capacity and producing 118,800 units. Amount Sales $4,514,400 Cost of goods sold 3,633,000 Selling and administrative expenses 517,540 Net income $363,860 Fixed costs for the period were the cost of goods sold $960,000, and selling and administrative expenses $274,000. In July, normally a slack manufacturing month, Swifty Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.77 per unit because of shipping costs but would not increase fixed costs and expenses.
Prepare an incremental analysis for the special order.

Incremental Analysis for special order

units                                                                   10,000

offer price                                                          $290,000

Variable cost:

Cost of goods sold($22.5 *10,000)     225,000

Selling and Administrative expenses

($2.05*10,000)                                       20,500

shipping cost (0.77*10,000)                  7,700       (253,200)

Additional contribution                                            36,800

Explanation:

variable cost goods sold per unit  =  ( 3,633,000 - 960,000)/118800 = $22.5

Variable selling and admin expense per unit = ( 517,540 - 274,000)/118800                  

                                                                         = $ 2.05

answer; it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits;

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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