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Fill Out 1 White Blank For Decision in Requirement 1 Global Sports Cards's total production cost is $0.57 per pack, as follows: Suppose the Baseball
Fill Out 1 White Blank For "Decision" in Requirement 1 Global Sports Cards's total production cost is $0.57 per pack, as follows: 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 57,000 baseball card packs for a special promotional campaign and offers $0.37 per pack, a total of $21,090. Global Sports Cards has enough excess capacity to handle the special order. 1 Requirements Data Table Variable costs: Direct materials ..$ 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. Direct labor 0.13 0.09 0.10 0.25 Variable overhead Fixed overhead $ 0.57 Total cost Print | Done 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 'O' for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (57,000 units) 0.37 $ 21,090 Revenue from special order $ Less variable expense associated with the order: Variable manufacturing costs 18,240 0.32_ 0.05 $ Contribution margin $ 2,850 Less: Additional fixed expenses associated with the order $ 2,850 Increase (decrease) in operating income from the special order Decision Accept the special sales order. Click to se Reject the special sales order. eck
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