OPS Corporation produces baseball bats for kids that it sells for $40 each. At capacity, the company can produce 46,500 bats a year. The costs of producing and selling 46,500 bats are provided in the accompanying table. (Click to view the costs.) Required Requirement 1. Suppose OPS is currently producing and selling 35,000 bats. At this level of production and sales, its fixed costs are the same as provided in the preceding table. Martinez Corporation wants to place a one-time special order for 11,500 bats at $22 each. OPS will incur no variable selling costs for this special order. Should OPS 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.) Fixed manufacturing costs Variable manufacturing costs 35000 253000 288000 Increase (decrease) in operating income if order is accepted Costs - X Required Help me solve this 1. Suppose OPS is currently producing and selling 35,000 bats. At this level of production and sales, its fixed costs are the same as provided in the preceding table. Martinez Corporation wants to place a one-time special order for 11,500 bats at $22 each. OPS will incur no variable selling costs for this special order. Should OPS accept this one-time special order? Show your calculations. 2. Now suppose OPS is currently producing and selling 46,500 bats. If OPS accepts Martinez's offer it will have to sell 11,500 fewer bats to its regular customers. (a) On financial considerations alone, should OPS accept this one-time special order? Show your calculations. (b) On financial considerations alone, at what price would OPS be indifferent between accepting the special order and continuing to sell to its regular customers at $40 per bat? (c) What other factors should OPS consider in deciding whether to accept the one-time special order? Cost per Bat Total Costs Direct materials $ 14 $ 651,000 Direct manufacturing labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 4 186,000 1 46,500 6 279,000 1 46,500 5 232,500 $ 31 $ 1,441,500 Total costs Print Done