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Louisville Corporation produces baseball bats for kids that it sells for $32 each. At capacity, the company can produce 50,000 bats a year. The costs

Louisville Corporation produces baseball bats for kids that it sells for $32 each. At capacity, the company can produce 50,000 bats a year. The costs of producing and selling 50,000 bats are as follows: Cost per Bat Total Costs Direct materials $12 $ 600,000 Direct manufacturing labor 3 150,000 Variable manufacturing overhead 1 50,000 Fixed manufacturing overhead 5 250,000 Variable selling expenses 2 100,000 Fixed selling expenses 4 200,000 Total costs $27 $1,350,000 Required 1. Suppose Louisville is currently producing and selling 40,000 bats. At this level of production and sales, its fixed costs are the same as given in the preceding table. Ripkin Corporation wants to place a onetime special order for 10,000 bats at $25 each. Louisville will incur no variable selling costs for this special order. Should Louisville accept this one-time special order? Show your calculations. 2. Now suppose Louisville is currently producing and selling 50,000 bats. If Louisville accepts Ripkin

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