Answered step by step
Verified Expert Solution
Question
1 Approved Answer
0 Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec - Cardz with a special order. The Hall of Fame wants
0 Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec - Cardz with a special order. The Hall of Fame wants to purchase 55,000 baseball card packs for a special promotional campaign and offers $0.39 per pack, a total of $21,450. Rec-Cardz's total production cost is $0.59 per pack, as follows: E: (Click the loon to view the cost Information.) Rec-Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare an incremental analysis to determine whether Rec-Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. (Enter a "O" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Data Table Total Order Incremental Analysis of Special Sales Order Decision Per Unit (55,000 units) Revenue from special order Variable costs: Less variable expense associated with the order: Direct materials $ 0.14 Variable manufacturing costs Direct labor 0.09 Contribution margin Variable overhead 0.11 Less: Additional fixed expenses associated with the order 0.25 Fixed overhead Increase (decrease) in operating income from the special order $ 0.59 Total cost RE Decision Print Done nalysis to Requirement 2. Now assume that the Hall of Farne wants special hologram baseball cards. Rec - Cardz must spend $5,300 to develop this hologram, which will be usell determine whether Rec-Cardz should accept the special order under these circumstances. (Enter a "' for any zero balances. Use parentheses or a minus sign to indical Total Order (55,000 units) Requirements Per Unit Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable manufacturing costs 1. Prepare an incremental analysis to determine whether Rec-Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec-Cardz must spend S5,300 to develop this hologram, which will be useless after the special order is completed. Should Roc - Cardz accept the special order under these circumstances? Show your analysis. Enter any number in the edit fields and then continue to the next question. ? 0 Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec - Cardz with a special order. The Hall of Fame wants to purchase 55,000 baseball card packs for a special promotional campaign and offers $0.39 per pack, a total of $21,450. Rec-Cardz's total production cost is $0.59 per pack, as follows: E: (Click the loon to view the cost Information.) Rec-Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare an incremental analysis to determine whether Rec-Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. (Enter a "O" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Data Table Total Order Incremental Analysis of Special Sales Order Decision Per Unit (55,000 units) Revenue from special order Variable costs: Less variable expense associated with the order: Direct materials $ 0.14 Variable manufacturing costs Direct labor 0.09 Contribution margin Variable overhead 0.11 Less: Additional fixed expenses associated with the order 0.25 Fixed overhead Increase (decrease) in operating income from the special order $ 0.59 Total cost RE Decision Print Done nalysis to Requirement 2. Now assume that the Hall of Farne wants special hologram baseball cards. Rec - Cardz must spend $5,300 to develop this hologram, which will be usell determine whether Rec-Cardz should accept the special order under these circumstances. (Enter a "' for any zero balances. Use parentheses or a minus sign to indical Total Order (55,000 units) Requirements Per Unit Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable manufacturing costs 1. Prepare an incremental analysis to determine whether Rec-Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec-Cardz must spend S5,300 to develop this hologram, which will be useless after the special order is completed. Should Roc - Cardz accept the special order under these circumstances? Show your analysis. Enter any number in the edit fields and then continue to the next
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started