Clean Up Corporation produces baseball bats for kids that it sells for $33 each. At capacity,...
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Clean Up Corporation produces baseball bats for kids that it sells for $33 each. At capacity, the company can produce 56,000 bats a year. The costs of producing and selling 56,000 bats are as follows: (Click to view the costs.) Read the requirements. Requirement 1. Suppose CleanUp is currently producing and selling 20,000 bats. At this 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 for 36,000 bats at $21 each. Clean Up will incur no variable selling costs for this special order. Should Clean Up accept 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.) Increase (decrease) in operating income if order is accepted Clean Up should ( Musial's special order because it operating income by $ Choose from any list or enter any number in the input fields and then continue to the next question. ? for kids that it sells for $33 each. At capacity, the company can produce 56,000 bats a year. The costs of produ i Data Table producing order for 3 Cost per Bat Total Costs same as given der. Should Cl Direct materials 10 $ 560,000 Direct manufacturing labor 4 224,000 e order is a Variable manufacturing overhead 1 56,000 Fixed manufacturing overhead 6 336,000 Variable selling expenses 1 56,000 er is acce 5 280,000 Fixed selling expenses 27 $ 1,512,000 al order be Total costs Print Done in the input fields and then continue to the next question. i Requirements er 1. Suppose Clean Up is currently producing and selling 20,000 bats. At this 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 for 36,000 bats at $21 each. Clean Up will incur no variable selling costs for this special order. Should CleanUp accept this one-time special order? Show your calculations. 2. Now suppose Clean Up is currently producing and selling 56,000 bats. If Clean Up accepts Musial's offer it will have to sell 36,000 fewer bats to its regular customers. (a) On financial considerations alone, should Clean Up accept this one-time special order? Show your calculations. (b) On financial considerations alone, at what price would Clean Up be indifferent between accepting the special order and continuing to sell to its regular customers at $33 per bat? (c) What other factors should Clean Up consider in deciding whether to accept the one-time special order? Print Done Clean Up Corporation produces baseball bats for kids that it sells for $33 each. At capacity, the company can produce 56,000 bats a year. The costs of producing and selling 56,000 bats are as follows: (Click to view the costs.) Read the requirements. Requirement 1. Suppose CleanUp is currently producing and selling 20,000 bats. At this 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 for 36,000 bats at $21 each. Clean Up will incur no variable selling costs for this special order. Should Clean Up accept 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.) Increase (decrease) in operating income if order is accepted Clean Up should ( Musial's special order because it operating income by $ Choose from any list or enter any number in the input fields and then continue to the next question. ? for kids that it sells for $33 each. At capacity, the company can produce 56,000 bats a year. The costs of produ i Data Table producing order for 3 Cost per Bat Total Costs same as given der. Should Cl Direct materials 10 $ 560,000 Direct manufacturing labor 4 224,000 e order is a Variable manufacturing overhead 1 56,000 Fixed manufacturing overhead 6 336,000 Variable selling expenses 1 56,000 er is acce 5 280,000 Fixed selling expenses 27 $ 1,512,000 al order be Total costs Print Done in the input fields and then continue to the next question. i Requirements er 1. Suppose Clean Up is currently producing and selling 20,000 bats. At this 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 for 36,000 bats at $21 each. Clean Up will incur no variable selling costs for this special order. Should CleanUp accept this one-time special order? Show your calculations. 2. Now suppose Clean Up is currently producing and selling 56,000 bats. If Clean Up accepts Musial's offer it will have to sell 36,000 fewer bats to its regular customers. (a) On financial considerations alone, should Clean Up accept this one-time special order? Show your calculations. (b) On financial considerations alone, at what price would Clean Up be indifferent between accepting the special order and continuing to sell to its regular customers at $33 per bat? (c) What other factors should Clean Up consider in deciding whether to accept the one-time special order? Print Done
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