Now suppose HomerunHomerun is currently producing and selling 54,000 bats. If HomerunHomerun accepts Ryan's offer it will have to sell fewer bats to its regular customers. (a) On financial considerations alone, should HomerunHomerun accept this one-time special order? Show your calculations. (b) On financial considerations alone, at what price would HomerunHomerun be indifferent between accepting the special order and continuing to sell to its regular customers at $ 35$35 per bat? (c) What other factors should HomerunHomerun consider in deciding whether to accept the one-time special order?

34,000

Homerun Corporation produces baseball bats for kids that it sells for $35 each. At capacity, the company can produce 54,000 bats a year. The costs of producing and selling 54,000 bats are as follows: EE (Click to view the costs.) Read the requirements. Requirement 1. Suppose Homerun is currently producing and selling 20,000 bats. At this level of production and sales, its fxed costs are the same as given in the preceding table. Ryan Corporation wants to place a one-time special order for 34,000 bats at $23 each. Homerun will incur no variable selling costs for this special order. Should Homerun 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.) Data Table Increase (decrease) in operating income if order is accepted Cost per Bat Total Costs Homerun should Ryan's special order because operating income by s 756,000 Direct materials 14 S Direct manufacturing labor 270,000 Variable manufacturing overhead 54,000 Fioxed manufacturing overhead 162,000 Variable selling expenses 108,000 216,000 Fixed selling expenses 1,566,000 29 $ Total costs Print Done Choose from any list or enter any number in the input fields and then continue to the next question. Homerun Corporation produces baseball bats for kids that it sells for $35 each. At capacity, the company can produce 54,000 bats a year. The costs of producing and selling 54,000 bats are as follows: EE (Click to view the costs.) Read the requirements. Requirement 1. Suppose Homerun is currently producing and selling 20,000 bats. At this level of production and sales, its fxed costs are the same as given in the preceding table. Ryan Corporation wants to place a one-time special order for 34,000 bats at $23 each. Homerun will incur no variable selling costs for this special order. Should Homerun 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.) Data Table Increase (decrease) in operating income if order is accepted Cost per Bat Total Costs Homerun should Ryan's special order because operating income by s 756,000 Direct materials 14 S Direct manufacturing labor 270,000 Variable manufacturing overhead 54,000 Fioxed manufacturing overhead 162,000 Variable selling expenses 108,000 216,000 Fixed selling expenses 1,566,000 29 $ Total costs Print Done Choose from any list or enter any number in the input fields and then continue to the next