Corporation produces baseball bats for kids that it sells for$33
each. At capacity, the company can produce32,000
bats a year. The costs of producing and selling32,000bats are as follows:LOADING...
(Click to view the costs.) Read the requirements
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Part 1Requirement 1. SupposeBattingis currently producing and selling30,000
bats. At tis level of production and sales, its fixed costs are the same as given in the preceding table.Musial
Corporation wants to place a one-time special order for2,000bats at$22each.
Battingwill incur no variable selling costs for this special order. ShouldBattingaccept 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.)