loader  Loading... Please wait...

Question(s) / Instruction(s):


11-29: Special Order. Louisville Corporation produces baseball bats for kids that it sells for $32 each. At capacity, the company can produce 50,000 bats a year. The costs of producing and selling 50,000 bats are as follows:


Cost per bat

Total Costs

Direct materials



Direct manufacturing labor



Variable manufacturing overhead



Fixed manufacturing overhead



Variable selling expenses



Fixed selling expenses



Total costs



1. Suppose Louisville is currently producing and selling 40,000 bats. At this level of production and sales its fixed costs are the same as given in the table above. Ripkin Corporation wants to place a one-time special order for 10,000 bats at $25 each. Louisville will incur no variable selling costs for this special order. Should Louisville accept this one-time special order? Show your calculations.

Yes, because his operating income will be increased; see table below.


Cost per bat


Total bats


Total cost












Variable costs:





Find Similar Answers by Subject

Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)

Expert's Answer
Download Solution:

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)

You Recently Viewed...

Reach Us