Question & Answer: Sports R Us produces basketballs. Recently the local in-house team contacted them about purchasing 2,000 basketballs and has a…..

Sports R Us produces basketballs. Recently the local in-house team contacted them about purchasing 2,000 basketballs and has agreed to pay $18 per ball plus $3 per ball for shipping. The current year’s production is 22,000 basketballs and total capacity is 25,000 balls. The following costs pertain to the production of basketballs.

Direct Materials $9.20
Direct Labor $4.00
VOH $3.80
FOH $4
Cost per ball $20.64
Prepare an incremental analysis. Should Sports R Us accept the special Order? Why?

Expert Answer

 

Question & Answer: Sports R Us produces basketballs. Recently the local in-house team contacted them about purchasing 2,000 basketballs and has a..... 1

Still stressed from student homework?
Get quality assistance from academic writers!