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
$5,616,000
$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...