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4. Special Order. Louisville Corporation produces basebal bats for kids that it sells for $32 each. At capacity, the company can produce 50,00 bats a
4. Special Order. Louisville Corporation produces basebal bats for kids that it sells for $32 each. At capacity, the company can produce 50,00 bats a year. The costs of producing and selling 50,000 bats are as follows Cost per Bat Total Costs Direct materials $12 500,000 Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total costs 150,000 50,000 250,000 100,000 200,000 27 .350 000 Suppose Louisvilte is currently producing and seling 40,000 bats. At this level of production and sales, its fixed costs are the same as given in the preceding table. Ripkin Corporation wants to place a one- time special order for 10,000 bats at $25 each. Louisville will incur no variable selling costs for this spe- cial order. Should Louisville accept this one-time special order? Show your calculations
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