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3. Montalvo Sports Company produces baseballs bats which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 baseball bats is: Materials
3. Montalvo Sports Company produces baseballs bats which it normally sells to retailers for $6 each. The cost of manufacturing 25,000 baseball bats is: Materials Labor Variable overhead Fixed overhead Total $ 10,000 30,000 20,000 40,000 $100,000 Montalvo also incurs 5% sales commission ($0.30) on each bats sold. Lafontaine Inc. offers Montalvo $4.25 per bats for 3,000 bats. Lafontaine Inc. sells the bats under its own brand name in others markets not yet served by Montalvo. If Montalvo accepts the offer, its fixed overhead will increase from $40,000 to $43,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order. Instructions: (15 points) 1. Prepare an incremental analysis for the special order. 2. Should the special order will be accepted
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