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Double 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 Double 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 $27 each. Double will 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 i Data Table X Cost per Bat Total Costs Direct materials $ 16 $ 704,000 Variable direct manufacturing labor 3 132,000 Variable manufacturing overhead 2 88,000 Fixed manufacturing overhead 3 132,000 Variable selling expenses N 88,000 2 88,000 Fixed selling expenses $ 28 $ 1,232,000 Total costs Print Done i Requirements 1. Suppose Double 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 $27 each. Double will incur no variable selling costs for this special order. Should Double accept this one-time special order? Show your calculations. 2. Now suppose Double is currently producing and selling 44,000 bats. If Double accepts Ruth's offer it will have to sell 8,000 fewer bats to its regular customers. (a) On financial considerations alone, should Double accept this one-time special order? Show your calculations. (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 $34 per bat? (c) What other factors should Double consider in deciding whether to accept the one-time special order