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Double Corporation produces baseball bats for kids that it sells for $40 each. At capacity, the company can produce 32,000 bats a year. The costs
Double Corporation produces baseball bats for kids that it sells for $40 each. At capacity, the company can produce 32,000 bats a year. The costs of producing and selling 32,000 bats are as follows: (Click to view the costs.) Read the requirements. vill 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 Musial's special order because it operating income by 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.) On financial consideration alone, Double should operating income by Musial's special order because it (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 $40 per bat? Double would be indifferent between accepting the special order and continuing to sell to its regular customers at $40 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? A. Determine if the possibility of future long-term sales from Musial seems likely. B. Can the company afford to adopt the special order price long-term or with other customers who may ask for price concessions? C. The effect on customer relationships by refusing sales from existing customers. D. All of the above Data table
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