E8-17A (similar to) Question Help Suppose the Hockey Hall of Fame in Toronto has approached Trader-Cardz with a special order. The Hall of Fame wants to purchase 66,000 hockey card packs for a special promotional campaign and offers $0.41 per pack, a total of $27,060. Trader-Cardz's total production cost is $0.53 per pack, as follows: (Click the icon to view the cost information.) Trader-Cardz has enough excess capacity to handle the special order. Requirements Requirement 1. Prepare an incremental analysis to determine whether Trader-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.) Trader-Cardz $ 27,060 Incremental Analysis of Special Sales Order Expected increase in revenues Expected increase in expenses: Variable manufacturing costs $ (20,460) 0 Fixed manufacturing costs Total expected increase in expenses (20,460) $ 6,600 Expected increase (decrease) in operating income Trader-Cardz should accept the special sales order because the operating income is expected to increase. Requirement 2. Now assume that the Hall of Fame wants special hologram hockey cards. Trader-Cardz must spend $2,100 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental analysis to determine whether Trader-Cardz should accept the special order under these circumstances. (Use parentheses or a minus sign to enter a decrease in operating income.) Trader-Cardz Incremental Analysis of Special Sales Order Expected increase in revenues $ 27,060 Expected increase in expenses: Variable manufacturing costs $ (20,460) Requirements Fixed manufacturing costs Total expected increase in expens Expected increase (decrease) in Trader-Cardz should accept the cted to increase 1. Prepare an incremental analysis to determine whether Trader-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. Trader-Cardz must spend $2,100 to develop this hologram, which will be useless after the special order is completed. Should Trader-Cardz accept the special order under these circumstances? Show your analysis. Print Done E8-17A (similar to) Question Help Suppose the Hockey Hall of Fame in Toronto has approached Trader-Cardz with a special order. The Hall of Fame wants to purchase 66,000 hockey card packs for a special promotional campaign and offers $0.41 per pack, a total of $27,060. Trader-Cardz's total production cost is $0.53 per pack, as follows: (Click the icon to view the cost information.) Trader-Cardz has enough excess capacity to handle the special order. Requirements Requirement 1. Prepare an incremental analysis to determine whether Trader-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.) Trader-Cardz $ 27,060 Incremental Analysis of Special Sales Order Expected increase in revenues Expected increase in expenses: Variable manufacturing costs $ (20,460) 0 Fixed manufacturing costs Total expected increase in expenses (20,460) $ 6,600 Expected increase (decrease) in operating income Trader-Cardz should accept the special sales order because the operating income is expected to increase. Requirement 2. Now assume that the Hall of Fame wants special hologram hockey cards. Trader-Cardz must spend $2,100 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental analysis to determine whether Trader-Cardz should accept the special order under these circumstances. (Use parentheses or a minus sign to enter a decrease in operating income.) Trader-Cardz Incremental Analysis of Special Sales Order Expected increase in revenues $ 27,060 Expected increase in expenses: Variable manufacturing costs $ (20,460) Requirements Fixed manufacturing costs Total expected increase in expens Expected increase (decrease) in Trader-Cardz should accept the cted to increase 1. Prepare an incremental analysis to determine whether Trader-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. Trader-Cardz must spend $2,100 to develop this hologram, which will be useless after the special order is completed. Should Trader-Cardz accept the special order under these circumstances? Show your analysis. Print Done