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4- Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Sports - Cardz with a special order. The Hall of Fame wishes
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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Sports - Cardz with a special order. The Hall of Fame wishes to purchase 50,000 baseball card packs for a special promotional campaign and offers $0.35 per pack, a total of $18,000. Sports - Cardz's total production cost is $0.58 per pack, as follows: (Click the icon to view the cost information.) Sports - Caritz has enough excess capacity to handle the special cartier Read the requirements. Requirement 1. Prepare a differential analysis to cetermine whether Sports - Cardz should accept the special sales order. (Enter decreases to profite with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses Variable manufacturing cost packen Expected in operating income Decision: Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards Sports - Cardz will spend $5 700 to develop this hologram, which will be useless after the special order is completed. Should Sports - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.38 per pack? Start by preparing the analysis with the additional cost for the special hologram. (Enter decreases to profils with a parentheses or minus sign.) i Data Table Expected increase in revenues Expected increase in expenses Variable manufacturing cost: packs i Requirements Fixed manufacturing costs Variable costs Direct materials Direct labor $ 0.11 0.11 Expected increase in total expenses Expected in operating income 1. Prepare a differential analysis to determine whether Sports - Cardz should accept the special sales order 2. Now assume that the Hall of Fame wants special hologram baseball cards. Sports - Cardz will spend $5,700 to develop this holograrn, which will be useless after the special order is completed. Should Sports - Card accept the special order under these circumstances, assuming no change in the special pricing af $0.36 per pack? Variable overhead 0.09 Fixed overhead 0.25 Decision $ 0.56 Total cost Print Done Choose from any list or enter any number in the input fields and then continue to the next question. Print DonoStep by Step Solution
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