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Data Table Variable costs: Direct materials 0.14 Direct labor 0.05 Variable overhead 0.08 0.25 Fixed overhead $ 0.52 Total cost Print Done Done Suppose the

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Data Table Variable costs: Direct materials 0.14 Direct labor 0.05 Variable overhead 0.08 0.25 Fixed overhead $ 0.52 Total cost Print Done Done Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby-Cardz with a special order. The Hall of Fame wishes to purchase 52,000 baseball card packs for a special promotional campaign and offers $0.32 per pack, a total of $16,640. Hobby - Cardz's total production cost is $0.52 per pack, as follows: B Click the icon to view the cost information.) Hobby - Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Hobby - Cardz should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses Variable manufacturing cost: packs xD Expected in operating income Decision: Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hobby-Cardz will spend $5,600 to develop this hologram, which will be useless after the special order is completed. Should Hobby-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.32 per pack? Start by preparing the analysis with the additional cost for the special hologram. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses: Variable manufacturing cost: packs x Fixed manufacturing costs Expected increase in total expenses Expected in operating income Decision

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