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E8-21A (similar to) Question Help Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Global Sports Cards with a special order. The
E8-21A (similar to) Question Help Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Global Sports Cards with a special order. The Hall of Fame wants to purchase 50,000 baseball card packs for a special promotional campaign and offers $0.43 per pack, a total of $21,500. Global Sports Cards's total production cost is $0.63 per pack, as follows: (Click the icon to view the cost information.) Global Sports Cards has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare an incremental analysis to determine whether Global Sports 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 (50,000 units) Per Unit Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Enter any number in the edit fields and then click Check Answer. Data Table Read the requirements. Requirements Variable costs: Direct materials. ........ Direct labar Variable. overhead. Fixed overhead 0.13 0.08 0.12 0.30 1. Prepare an incremental analysis to determine whether Global Sports 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. Global Sports Cards must spend $5,200 to develop this hologram, which will be useless after the special order is completed. Should Global Sports Cards accept the special order under these circumstances? Show your analysis. 0.63 Total.cost Print Done Print Done
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