Solutions pls

10.29 Spedal order Diamond Led produces cricket bats for kids that it sells for $37 each. At capacity, the company can produce 54 000 bats a year. The costs of producing and selling 54 000 bats are as follows: Cost per bat Total costs Direct materials $14 $756 000 Direct production about 4 216000 Variable production 108 000 overhead Fixed production overhead 5 270 000 Variable selling expenses 308 000 Fixed selling expenses 3 162 000 Total COSES $30 S1 62000 NA Required 1. Suppose that Diamond is currently producing and selling 44 000 bars. At this level of production and sales, its fixed costs are the same as given in the preceding table. Warne Ltd wants to place a one-dime special order for 10 000 bats at 521 each Diamond will incur no variable selling costs for this special order. Should Diamond accept this one-time spedal order? Show your calculations. Now suppose that Diamond is currently producing and selling 54 000 bars. If Diamond accepts Warne's offer, it will have to set 10 000 fewer bats to its regular customers. 2. a. On financial considerations alone should Diamond accept this one-time spedal order? Show your calculations b. On financial considerations alone at what price would Diamond be indifferent between accepting the special order and continuing to sell to its regular customers at $37 per bat? What other factors should Diamond consider in deciding whether to accept the one-time special order? 21