Diamond Corporation produces baseball bats for kids that it sells for $30 each. At capacity, the company can produce 40,000 bats a year. The costs of producing and selling 40,000 bats are as follows: (Click to view the costs.) Read the requirements Res Requirement 1. Suppose Diamond is currently producing and selling 26,000 bats. At this level of production and sales, its fixed costs are the same as given in the preceding table. Musial Corporation wants to place a one-time special order for 14,000 bats at $22 each. Diamond will incur no variable selling costs for this special order. Should Diamond 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 Diamond should Musial's special order because it operating income by Cor Requirement 2. Now suppose Diamond is currently producing and selling 40,000 bats. If Diamond accepts Musial's offer it will have to sell 14,000 fower bats to its regular customers. (a) On financial considerations alone, should Diamond accept this one-time special order? Show your calculations. (b) On financial considerations alone, at what price would Diamond be indifferent between accepting the special order and continuing to sell to its regular customers at $30 per bat? (c) What other factors should Diamond consider in deciding whether to accept the one-time special order? (a) On financial considerations alone, should Diamond accept this one-time special order? Show your calculations. Choose from any list or enter any number in the input fields and then continue to the next question Diamond Corporation produces baseball bats for kids that it solls for $30 each. At capacity, the company can produce 40,000 bats a year. The costs of producing and selling 40,000 bats are as follows: (Click to view the costs.) Read the requirements Stu Res Requirement 2. Now suppose Diamond is currently producing and selling 40,000 bats. If Diamond accepts Musial's offer it will have to sell 14,000 fower bats to its regular customers. (a) On financial considerations alone, should Diamond accept this one-time special order? Show your calculations. (b) On financial considerations alone, at what price would Diamond be indifferent between accepting the special order and continuing to sell to its regular customers at $30 per bat? (c) What other factors should Diamond consider in deciding whether to accept the one-time special order? (a) On financial considerations alone, should Diamond accept this one-time special order? Show your calculations. Mul Determine the effect on operating income if the order is accepted. (Enter decreases in operating income with parentheses or a minus sign.) Cha Con Increase (decrease) in operating income if order is accepted Musial's special order because it On financial consideration alone, Diamond should operating income by (b) On financial considerations alone, at what price would Diamond be indifferent between accepting the special order and continuing to sell to its regular customers at Choose from any list or enter any number in the input fields and then continue to the next question. Stu Increase (decrease) in operating income if order is accepted Res On financial consideration alone, Diamond should Musial's special order because it operating income by (b) On financial considerations alone, at what price would Diamond be indifferent between accepting the special order and continuing to sell to its regular customers at $30 per bat? Diamond would be indifferent between accepting the special order and continuing to sell to its regular customers at $30 per bat if the special selling price was (c) What other factors should Diamond consider in deciding whether to accept the one-time special order? Com O A Determine if the possibility of future long term sales from Musial seems likely OB. The effect on customer relationships by refusing sales from existing customers OC Can the company afford to adopt the special order price long-term or with other customers who may ask for price concessions? OD. All of the above Choose from any list or enter any number in the input fields and then continue to the next question _ _* 302328 !(Click to view the costs.) Ass 10 Data Table Road the requirements Stu Res Cost per Bat Mu Contribution margin foregone Fixed manufacturing costs Revenues from special order Total manufacturing costs Total manufacturing costs (less variable selling costs) and selling) Variable manufacturing costs d Diamond epting the s factors should Diamond consider in deciding whether to accept the one-tin (a) On financial considerations alone, should Diamond accept this one tim Determine the effect on operating income if the order is accepted. (Enterd Direct materials Variable direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total costs Total Costs 520,000 120,000 40,000 120,000 40,000 160,000 1,000,000 bits Fations bther con Print Done