(a) All Sports Ltd is a famous manufacturer of sports accessories such as baseball bats, football, sports shoes and sports-wear, etc. The company also produces Tennis bats for kids that it sells for $32 each. At full capacity, the company can produce 50,000 bats a year. The costs of producing and selling 50,000 tennis bats are as follows: Cost per Bat ($) Total Costs ($) 12 3 600,000 150,000 50,000 1 Direct materials Direct manufacturing labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total costs 5 250,000 2 4 100,000 200,000 1,350,000 27 All Sports 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 preceding table. Rolland Garros wants to place a one-time special order for 10,000 bats at $25 each, All Sports will incur no variable selling costs for this special order. REQUIRED Should All Sports accept this one-time special order? Show your calculations and provide any explanation to justify your answer [8 Marks] Page 2 of 8 (b) Now, suppose All Sports is currently producing and selling 50,000 bats. If All Sports accepts Roland Garros's offer it will have to sell 10,000 fewer bats to its regular customers. REQUIRED (i) On financial considerations alone, should All Sports accept this one-time special order? Show your calculations [8 Marks] (ii) On financial considerations alone, at what price would All Sports be indifferent between accepting the special order and continuing to sell to its regular customers at $32 per bat. [8 Marks (iii) 1 Sports.c What other factors should All Sports consider in deciding whether to a the one-time special order? [6 Marks)