Homework: Chapter 2 - Decision Making Homework Save 4 of 4 (3 complete) HW Score: 51.08%, 5.62 of 11 pts Score: 0 of 5 pts P11-34 (similar to) Question Help CleanUp Corporation produces baseball bats for kids that it sells for $34 each. At capacity, the company can produce 44,000 bats a year. The costs of producing and selling 44,000 bats are as follows: (Click to view the costs.) Read the requirements. Requirement 1. Suppose CleanUp is currently producing and selling 36,000 bats. At this level of production and sales, its fixed costs are the same as given in the preceding table. Ruth Corporation wants to place a one-time special order for 8,000 bats at $24 each. CleanUp will incur no variable selling costs for this special order. Should CleanUp 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 Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Check Answer Clear All * Requirements 1. Suppose CleanUp is currently producing and selling 36,000 bats. At this level of production and sales, its fixed costs are the same as given in the preceding Ruth Corporation wants to place a one-time special order for 8,000 bats at $24 each. CleanUp will incur no variable selling costs for this special order. Should CleanUp accept this one-time special order? Show your calculations, 2. Now suppose CleanUp is currently producing and selling 44,000 bats. If CleanUp accepts Ruth's offer it will have to sell 8,000 fewer bats to its regular customers. (a) On financial considerations alone, should CleanUp accept this one-time special order? Show your calculations. (b) On financial considerations alone, at what price would CleanUp be indifferent between accepting the special order and continuing to sell to its regular customers at $34 per bat? (c) What other factors should CleanUp consider in deciding whether to accept the one-time special order? Print Done i Data Table Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Cost per Bat Total Costs 13 $ 572,000 176,000 44,000 220,000 44,000 176,000 Fixed selling expenses 28 $ 1,232,000 Total costs Print Print Done Done