Accounting

part $1$

Suppose the Baseball Hall of Fame in$$ Cooperstown, New$$ York, has approached World Wide Cards with a special order. The Hall of Fame wants to purchase $59,000$ baseball card packs for a special promotional campaign and offers $ $0\mathrm{.}41$ per$$ pack, a total of $ $24,190.$

World Wide Cards$\text{'}$s total production cost is $ $0\mathrm{.}61$ per$$ pack, as$$ follows:

$1($Click the icon to view the cost$$ information.$)$

World Wide Cards has enough excess capacity to handle the special order.

Requiremnets

$1.$ Prepare an incremental analysis to determine whether World Wide Cards 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. World Wide Cards must spend $ $4,700$ to develop this$$ hologram, which will be useless after the special order is completed. Should World Wide Cards accept the special order under these$$ circumstances? Show your analysis.