Hitter Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the company can produce 56,000 bats a year. The costs of producing and selling 56,000 bats are as follows: (Click to view the costs.) Read the requirements. Requirement 1. Suppose Hitter is currently producing and selling 42,000 bats. At this level of production and sales, its fixed costs are the same as given in the preceding table. Mantle Corporation wants to place a one-time special order for 14,000 bats at $21 each. Hitter will incur no variable selling costs for this special order. Should Hitter 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 Hitter should ata table Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total costs Mantle's special order because it operating income by $ - Requirements Total Costs 616,000 224,000 Cost per Bat $ 11 $ 4 2 112,000 4 224,000 4 224,000 6 336,000 $ 31 $ 1,736,000 1. Suppose Hitter is currently producing and selling 42,000 bats. At this level of production and sales, its fixed costs are the same as given in the preceding table. Mantle Corporation wants to place a one-time special order for 14,000 bats at $21 each. Hitter will incur no variable selling costs for this special order. Should Hitter accept this one-time special order? Show your calculations. 2. Now suppose Hitter is currently producing and selling 56,000 bats. If Hitter accepts Mantle's offer it will have to sell 14,000 fewer bats to its regular customers. (a) On financial considerations alone, should Hitter accept this one-time special order? Show your calculations. (b) On financial considerations alone, at what price would Hitter be indifferent between accepting the special order and continuing to sell to its regular customers at $36 per bat? (c) What other factors should Hitter consider in deciding whether to accept the one-time special order