Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020,...

	Amount	Per Unit
Sales	$5,616,000	$52.00
Cost of goods sold	3,672,000	34.00
Selling and administrative expenses	486,000	4.50
Net income	$1,458,000	$13.50

Fixed costs for the period were cost of goods sold of $1,080,000, and selling and administrative expenses of $194,400.

In July, normally a slack manufacturing month, Pro Sports receives a special order for 10,800 basketballs at $32 each 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.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020,...

Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020, the company reported the following operating results while operating at 90% of plant capacity: Amount Per Unit Sales $5,232,600 $51.00 Cost of goods sold 3,591,000 35.00 Selling and administrative expenses 451,440 4.40 Net income $1,190,160 $11.60 Fixed costs for the period were cost of goods sold of $1,026,000, and selling and administrative expenses of $184,680. In July, normally a slack manufacturing month, Pro Sports...

Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2016,...

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: Amount Sales $4,500.00 at $50.00 per unit Cost of goods sold 3,150,000 at $35.00 per unit Selling and administrative expenses 360,000 at $4.00 per unit Net income 990,000 at $11.00 per unit Fixed costs for the period were: cost of goods sold $900,000, and selling and administrative expenses $162,000. In...

ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6...

ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, 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 3,560,532 Selling and administrative expenses 468,164 Net income $485,704 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $227,000. In July, normally a slack manufacturing month, ThreePoint Sports receives...

ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6...

ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,300 units. Amount Sales $4,571,400 Cost of goods sold 3,713,667 Selling and administrative expenses 534,893 Net income $322,840 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $257,000. In July, normally a slack manufacturing month, ThreePoint Sports receives...

Bramble Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6...

Bramble 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 119,700 units. Amount Sales $4,788,000 Cost of goods sold 3,559,884 Selling and administrative expenses 468,445 Net income $759,671 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $247,000. In July, normally a slack manufacturing month, Bramble Sports receives...

ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6...

ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 119,700 units. Amount Sales $4,788,000 Cost of goods sold 3,559,884 Selling and administrative expenses 468,445 Net income $759,671 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $247,000. In July, normally a slack manufacturing month, ThreePoint Sports receives...

PinaColada Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6...

PinaColada Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,300 units. Amount Sales $4,571,400 Cost of goods sold 3,713,667 Selling and administrative expenses 534,893 Net income $322,840 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $257,000. In July, normally a slack manufacturing month, PinaColada Sports receives...

Problem 20-1A (Part Level Submission) ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association...

Problem 20-1A (Part Level Submission) ThreePoint 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 119,900 units. Amount Sales $4,676,100 Cost of goods sold 3,527,059 Selling and administrative expenses 482,601 Net income $666,440 Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $244,000. In July, normally a slack...

Elias Company has prepared a budget for the first six months of 2020. Monthly budgets for...

Elias Company has prepared a budget for the first six months of 2020. Monthly budgets for revenues are provided at left. Experience indicates that Elias will collect 75% of sales in the month of sale, 15% in the month following the sale, and 7.5% in the second month after the sale. The remaining 2.5% of sales are expected to be uncollectible. Prepare a cash collections budget for Elias for the months of March, April, and May 2020. Show your work....

Speedy Sports manufactures basketballs that sell for $ 25. At present, the ball is manufactured in...

Speedy Sports manufactures basketballs that sell for $ 25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Therefore, variable costs are high, totaling $ 15 per ball, of which 60% is direct labor cost. Fixed costs are $ 210,000. Last year, the firm sold 30,000 balls. Compute (1) the CM ratio and the breakeven point in units and (2) the degree of operating leverage. Due to an increase in labor rates,...

Subjects