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Cost information - i X Requirements - Variable costs: Direct materials $ 0.16 Direct labour 0.08 1. Prepare an incremental analysis to determine whether Collectible-Cardz
Cost information - i X Requirements - Variable costs: Direct materials $ 0.16 Direct labour 0.08 1. Prepare an incremental analysis to determine whether Collectible-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 hockey cards. Collectible-Cardz must spend $2,600 to develop this hologram, which will be useless after the special order is completed. Should Collectible-Cardz accept the special order under these circumstances? Show your analysis. Variable overhead 0.10 0.25 Fixed overhead $ 0.59 Total cost Print Done Suppose the Hockey Hall of Fame in Toronto has approached Collectible-Cardz with a special order. The Hall of Fame wants to purchase 64,000 hockey card packs for a special promotional campaign and offers $0.41 per pack, a total of $26,240. Collectible-Cardz's total production cost is $0.59 per pack, as follows: (Click the icon to view the cost information.) Collectible-Cardz has enough excess capacity to handle the special order. Requirements Requirement 1. Prepare an incremental analysis to determine whether Collectible-Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. (Use parentheses or a minus sign to enter a decrease in operating income.) Collectible-Cardz Incremental Analysis of Special Sales Order Expected increase in revenues Expected increase in expenses: Variable manufacturing costs Fixed manufacturing costs Total expected increase in expenses Expected increase (decrease) in operating income Collectible-Cardz should the special sales order because the operating income is expected to Requirement 2. Now assume that the Hall of Fame wants special hologram hockey cards. Collectible-Cardz must spend $2,600 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental analysis to determine whether Collectible-Cardz should accept the special order under these circumstances. (Use parentheses or a minus sign to enter a decrease in operating income.) Collectible-Cardz Incremental Analysis of Special Sales Order Expected increase in revenues Expected increase in expenses: Variable manufacturing costs Fixed manufacturing costs Total expected increase in expenses Expected increase (decrease) in operating income Collectible-Cardz should the special sales order under these circumstances because the operating income is expected to
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