Louisville Corportation 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:

Costs per Bat Total Costs

Direct materials $12 $600,000

Direct manufacturing labor 3 150,000

Variable manufacturing overhead 1 50,000

Fixed manufacturing overhed 5 250,000

Variable selling expenses 2 100,000

Fixed selling expenses 4 200,000

Total Costs $27 1,350,000

Suppose Louisville is currently producing and selling 40,000 bats. At thi slevel of production and sales, its fixed costs

are the same as given in the preceding table. Ripkin Corporation wants to place a one-time 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.