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Show calculations that support your answers. #1. Special Order Decision Baldwin Golf Co. produces golf equipment including a golf bag that sells for $200. Although
Show calculations that support your answers. #1. Special Order Decision Baldwin Golf Co. produces golf equipment including a golf bag that sells for $200. Although the company's production capacity is 5,000 bags per year, only 4,000 bags are currently being produced and sold. The production costs for 4,000 bags are as follows: Unit-level material cost ($100 per bag) Unit-level labor cost ($50 per bag) Unit-level overhead cost ($12.00 per bag) Batch-level set-up costs ($4,000 per batch of 1,000 bags) Product-level costs per year (golf bag advertising; fixed cost) Allocated portion of facility costs (annual factory lease cost) $400,000 $200,000 $ 48,000 $ 16,000 $ 15,000 $ 30,000 Golf Mart Stores is not one of Baldwin's regular customers. Golf Mart has made an offer to Baldwin to purchase 1,000 golf bags as a one-time special purchase at a price of $170 per bag. Required: Prepare a quantitative analysis that indicates whether the special order should be accepted or rejected
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