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B-Bats Corporation produces baseball bats for kids that it s…

Posted byAnonymous July 2, 2025July 2, 2025

Questions

B-Bаts Cоrpоrаtiоn produces bаseball bats for kids that it sells for $35 each. At capacity, the company can produce 45,500 bats a year. The costs of producing and selling 45,500 bats are as follows:     Cost per Bat Total Costs Direct materials $10 $455,000 Direct manufacturing labour 4 182,000 Variable manufacturing overhead 1 45,500 Fixed manufacturing overhead 5 227,500 Variable selling expenses 1 45,500 Fixed selling expenses 5 227,500 Total costs $26 $1,183,000   Baseball Fields Corporation wants to place a one-time special order for 9,500 bats at $22 each. B-Bats will incur no variable selling costs for this special order.   Required   Suppose B-Bats is currently producing and selling 45,500 bats. On the financial considerations alone, should B-Bats accept this one-time special order? Show your calculations.   On financial considerations alone, at what price would B-Bats be indifferent between accepting the special order and continuing to sell to its regular customers at $35 per bat?   Explain what other factors should B-Bats consider in deciding whether to accept the one-time special order?

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