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...