Acct&203-Incremental Analysis Chapter 24 Special Order Jens Sporting Goods, Inc., manufactures a complete line of sporting equipment. Leiden Enterprises operates a large chain of discount stores. Leiden has approached Jens with a special order for 30,000 deluxe baseballs. Instead of being packaged separately, the balls are to be bulk packed in boxes containing 500 baseballs each. Leiden is willing to pay $2.45 per baseball. The Jens Accounting Department knows that annual expected production is 400,000 baseballs. It also knows that the current year's production is 410,000 baseballs and that the maximum production capacity is 450,000 baseballs. The following additional information is available. Standard unit cost data for 400,000 baseballs: $ .90 .60 Direct materials Direct labor Manufacturing overhead Variable 50 Fixed ($100,000/400,000) Packaging per unit Advertising (S60,000/400,000) Other fixed selling and administrative expenses ($120,000/400,000) Product unit cost 25 30 .15 .30 $3.00 $4.00 Unit selling price Total estimated bulk packaging costs for special order (30,000 baseballs: 500 per box) $2,500 Identify the relevant amounts in this decision. Compute the differential revenues and costs if Jens accepts this order. Assuming Jens does accept the order, how much will operating income increase? Assuming Jens wants a $3,000 profit, what is the minimum price it should accept for each baseball (round to nearest cent)? a. b. c. d