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Double Corporation produces baseball bats for kids that it sells for $37 each. At capacity, the company can produce 54,000 bats a year. The costs

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Double Corporation produces baseball bats for kids that it sells for $37 each. At capacity, the company can produce 54,000 bats a year. The costs of producing and selling 54,000 bats are as follows: (Click to view the costs.) Read the requirements. Requirement 1. Suppose Double is currently producing and selling 30,000 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 24,000 bats at $23 each. Double will incur no variable selling costs for this special order. Should Double 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 Double should Ripken's special order because it operating Income by Requirement 2. Now suppose Double is currently producing and selling 54.000 bats. If Double accepts Ripken's offer it will have to sell 24.000 fewer bats to its regular customers. (a) On financial considerations alone, should Double accept this one-time special order? Show your calculations. (b) On financial considerations alone, at what price would Double be indifferent between accepting the special order and continuing to sell to its regular customers at $37 per bat? (c) What other factors should Double consider in deciding whether to accept the one-time special order? (a) On financial considerations alone, should Double 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 Ripken's special order because it On financial consideration alone, Double should operating income by Double Corporation produces baseball bats for kids that it sells for $37 each. At capacity, the company can produce 54,000 bats a year. The costs of producing and selling 54,000 bats are as follows: (Click to view the costs.) Read the requirements, one-time special order? Show your calculations. (b) on financial considerations alone, at what price would Double be indifferent between accepting the special order and continuing to sell to its regular customers at $37 per bat? (c) What other factors should Double consider in deciding whether to accept the one time special order? (a) On financial considerations alone, should Double 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 On financial consideration alone, Double should Ripken's special order because it operating income by (b) On financial considerations alone, at what price would Double be indifferent between accepting the special order and continuing to sell to its regular customers at $37 per bat? Double would be indifferent between accepting the special order and continuing to sell to its regular customers at $37 per bat if the special selling price was (c) What other factors should Double consider in deciding whether to accept the one-time special order? O A Determine if the possibility of future long-term sales from Ripken seems likely. O B. Can the corripany afford to adopt the special order price long-term or with other customers who may ask for price concessions? O C. The effect on customer relationships by refusing sales from existing customers. OD. All of the above Data table Cost per Bat Total Costs Direct materials 12 $ 648,000 270,000 5 1 54,000 Variable direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses 6 324,000 3 162,000 162,000 3 Fixed selling expenses $ 30 $ 1,620,000 Total costs Print Done

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