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Each part please Homework: HW #6 - Chapter 8 Save Score: 0 of 1 pt 5 of 10 (2 complete) HW Score: 20%, 2 of
Each part please
Homework: HW #6 - Chapter 8 Save Score: 0 of 1 pt 5 of 10 (2 complete) HW Score: 20%, 2 of 10 pts E8-21A (similar to) Question Help Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Active - Cardz with a special order. The Hall of Fame wants to purchase 56,000 baseball card packs for a special promotional campaign and offers $0.40 per pack, a total of $22,400 Active - Cardz's total production cost is $0.60 per pack, as follows: (Click the icon to view the cost information.) Active - Cardz has enough excess capacity to handle the special order. Read the requirements Requirement 1. Prepare an incremental analysis to determine whether Active - Cardz 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 Incremental Analysis of Special Sales Order Decision Per Unit (56,000 units) Requirements x Revenue from special order Less variable expense associated with the order: Variable costs: Variable manufacturing costs 0.13 Direct materials Direct labor 0.07 Contribution margin 1. Prepare an incremental analysis to determine whether Active - 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 baseball cards. Active - Cardz must spend $5,200 to develop this hologram, which will be useless after the special order is completed. Should Active - Cardz accept the special order under these circumstances? Show your analysis. Variable overhead Less: Additional fixed expenses associated with the order 0.10 0.30 Fixed overhead. Increase (decrease) in operating income from the special order $ 0.60 Total cost Print Done Print Done Enter any number in the edit fields and then click Check Answer. ? parts Clear All CheckStep by Step Solution
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