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E8-21A (similar to) 3 Question Help Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached World Wide Cards with a special order.
E8-21A (similar to) 3 Question Help 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 51,000 baseball card packs for a special promotional campaign and offers $0.40 per pack, a total of $20,400 World Wide Cards's total production cost is $0.60 per pack, as follows: : (Click the icon to view the cost information.) World Wide Cards has enough excess capacity to handle the special order. Read the requirements. Requirement 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. (Enter a "0" for any zero balances Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Total Order Data Table -X Per Unit (51,000 units) Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable costs: Variable manufacturing costs Direct materials 0.11 Contribution margin Direct labor 0.09 Less: Additional fixed expenses associated with the order Variable overhead 0.10 0.30 Increase (decrease) in operating income from the special order Fixed overhead $ 0.60 Total cost Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Check
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