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help please Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached World Wide Cards with a special order. The Hall of Fame
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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 56,000 baseball card packs for a special promotional campaign and offers S0.44 per pack, a total of $24,640 World Wide Cards's total production cost is S0.64 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 Revenue from special order 0.44 S 24,640 Less variable expense associated with the order: 0.34 19,040 Variable manufacturing costs $ 0.10 S 5,600 Contribution margin Less: Additional fixed expenses associated with the order 5,600 Increase (decrease) in operating income from the special order Decision: Accept the special sales order. Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. World Wide Cards must spend $4,800 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental analysis to determine whether World Wide Cards should accept the special order under these circumstances. (Enter a "0" for any zero balances. Use pare order.) from the special Data Table Total Order Per Unit (56,000 unlts) Incremental Analysis of Special Sales Order Decision Revenue from special order Variable costs: Less variable expense associated with the order Direct materials 0.14 Direct labor Variable manufacturing costs 0.08 Variable overhead 0.12 Contribution margin 0.30 Fixed overhead Less: Additional fixed expenses associated with the order 0.64 Total.cost Increase (decrease) in operating income from the special orderStep by Step Solution
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