OPS Corporation produces baseball bats for kids that it sells for $39 each. At capacity, the company can produce 51,000 bats a year. The costs of producing and selling 51,000 bats are provided in the accompanying table. (Click to view the costs.) Costs X i Required his le Jons k Corporation wants to place a one-time Total Costs s in o Cost per Bat $ 16 $ Direct materials 816,000 153,000 102,000 2 Direct manufacturing labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 4 204,000 1. Suppose OPS is currently producing and selling 40,000 bats. At this level of production and sales, its fixed costs are the same as provided in the preceding table. Fisk Corporation wants to place a one-time special order for 11,000 bats at $24 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 51,000 bats. If OPS accepts Fisk's offer it will have to sell 11.000 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 $39 per bat? (c) What other factors should OPS consider in deciding whether to accept the one-time special order? 2 102,000 255,000 5 S 32 $ 1.632,000 Total costs Print Done Print Done