Homerun Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the company can produce 48,000 bats a year. The costs of producing and selling 48,000 bats are as follows: EEB (Click to view the costs.) Read the requirements. Requirement 1. Suppose Homerun 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. Gehrig Corporation wants to place a one-time special order for 14,000 bats at $25 each. Homerun ll incur no variable selling costs for this special order. Should Homerun acoept this one-time special order? Show your calculations. Detemine 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 Homerun shouldG Gehrig's special order because toperating income by s Requirement 1. Suppose Homerun 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. Gchrig Corporation wants to place a one-time special order for 14,000 bats at $25 each. Homerun will incur no variable selling costs for this special order. Should Homerun 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.) Contribution margin foregone Fixed manufacturing costs Revenues from special order Total manufacturing costs Total manufacturing costs (less variable selling costs) Variable manufacturing costs operating income by $ Requirement 1. Suppose Homerun is currently praducing and selling 34,000 bats. At this level of production and sales, its fixed costs are the same as given in the preceding table. Gehrig Corporation wants to place a one-time special order for 14,000 bats at $25 each. Homerun will incur no variable selling costs for this special arder. Should Homerun acoept 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.) Contribution margin foregone Fixed manufacturing costs Revenues from special order Total manufacturing costs Total manufacturing costs (less variable selling costs) Variable manufacturing costs operating inoome by $ Cnoose Trom any list or enter any numper in tne input neias and then continue to the next question. Homerun Corporation produces baseball bats for kids that it sells f (Click to view the costs.) Read the requirements. Requirement 1. Suppose Homerun is currently producing and sell producin Data Table Cost per B Total Costs given in t time spe one-time special order for 14,000 bats at $25 each. Homerun will i Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total costs 768,000 144,000 48,000 144,000 192,000 144,000 30 $1,440,000 etermine the effect on oper ating income if the order is accepted Increase (decrease) in operating income if order is accepted Homerun shouldGehrig's special order Print Done
