Slugger Corporation produces baseball bats for kids that it sells for $34 each. At? capacity, the company can produce 54,500 bats a year. The costs of producing and selling 54,500 bats are provided in the accompanying table.

Direct materials Direct manufacturing labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total costs $ Cost per Bat Total Costs 708,500 109,000 109,000 381,500 109,000 163,500 1 ,580,500 :E :; Increase (decrease) in operating income if order is accepted l;l Slugger should |:l Clemente's special order because it |:l operating income by $|:|. Increase (decrease) in operating income if order is accepted On financial consideration alone, Slugger should Clemente's special order because it operating income by $