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is this correct? as follows Batting Corporation produces baseball bats for kids that it sels for $37 each. Al capacity, the company can produce 44.000
is this correct?
as follows Batting Corporation produces baseball bats for kids that it sels for $37 each. Al capacity, the company can produce 44.000 bats a year. The costs of producing and selling 44,000 bats are Click to view the coste Read the requirements Requirement 1. Suppose Batting 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. Roken al Corporation wants to place a one-time special order for 10,000 bats at $23 cach. Batting will incur no variable soling costs for this special order. Should Batting accept this one-time special order? Show your calculations Determine the effect on operating income if the order is accepted. (inter decreases in operating income with parentheses or a minusson Revenues from special order 230000 Total manufacturing costs (less variable selling costs) 180000 Increase (decrease in operating income if order is accepted 50000 50000 Batting should accept Ripken's special order because it increases operating income by $ X Requirements Data table tiable late Cost per Bat S 11 $ Total Costs 484.000 5 2 1. Suppose Batting is currently producing and selling 34,000 bats. At this level of production and sales, its food costs are the same as given in the preceding table Ripken Corporation wants to place a one-time special order for 10,000 bats at 523 each Batting will incur no variable selling costs for this special order. Should Batting accept this one-time special order? Show your calculations 2. Now suppose Batting is currently producing and selling 44,000 bats. It Betting accepta Ripken's offer it will have to sell 10.000 fewer bats to its regular customers, (a) On financial considerations alone, should Batting accept this one-time special order? Show your calculations. (b) On financial considerations alone, at what price would Batting de indifferent between accepting the special order and continuing to sell to its regular customers at $37 per bat? (c) What other factors should Betting consider in deciding whether to accept the one-time special order? 5 Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed seling expenses Total costs 220,000 38.000 220.000 178,000 176.000 4 4 315 1,364,000 ow to ouble Print Done Print Done Step by Step Solution
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