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Batting Corporation produces baseball bats for kids that it sells for $37 each. At capacity, the company can produce 44.000 bats a year. The costs

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Batting Corporation produces baseball bats for kids that it sells for $37 each. At capacity, the company can produce 44.000 bats a year. The costs of producing and selling 44,000 bats are as follows Click to view the costs. Read the requirements Requirement 1. Suppose Batting is currently producing and selling 34,000 bats. At this level of production and sales, its fixed costs are the same as given in the preceding table. Ripken Corporation wants to place a one-time special order for 10,000 bats at $23 each. Batting will incur no variable selling costs for this special order. Should Batting accept this one-time special order? Show your calculations Determine the effect on operating income if the order is accepted. (Enter decreases in operating income with parentheses or a minus sign) Increase (decrease) in operating income if order is accepted Batting should Ripken's special order because it operating income by $ Data table Requirements Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable saling expenses Fived seting expenses Cost per Bat Total Costs $ 115 484.000 220,000 2 88,000 5 220.000 176.000 4 176,000 315 1,364,000 1. Suppose Batting is currently producing and selling 34.000 bats. At this level of production and sales, its foced costs are the same as given in the preceding table. Ripken Corporation wants to place a one-time special order for 10,000 bats at $23 each. Batting will incur no vanable selling costs for this special order. Should Batting accept this one-time special order? Show your calculations 2. Now suppose Batting is currently producing and selling 44,000 bats. If Batting accepts Ripken's offer it will have to sell 10,000 fewer bats to its regular customers. (a) On financial considerations alone, should Batting accept this one-time special order? Show your calculations. (b) On financial considerations alone, at what price would Batting be indifferent between accepting the special order and continuing to sell to its regular customers at $37 per bat? (c) What other factors should Batting consider in deciding whether to accept the one-time special order? Total costs Print Done Print Done

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