=+Chapter 8: Decision making and relevant information 333 M08_HORN3377_02_LT_C08.indd 333 2/09/13 3:42 PM Required 1 Suppose Kingston Ltd is currently producing and selling 40000 bats. At this level of production and sales, its fixed costs are the same as given in the table above. Woden Ltd wants to place a one-time-only special order for 10000 bats at $25 each.

Kingston Ltd will incur no variable selling costs for this special order. Should Kingston Ltd accept this one-time-only special order?

Show your calculations.