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= Homework Chapter 8 Homework : Question 2, E8-21A (sim. Part 1 of 4 1 4 > HW Score: 16.67%, 1 of 6 points :

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= Homework Chapter 8 Homework : Question 2, E8-21A (sim. Part 1 of 4 1 4 > HW Score: 16.67%, 1 of 6 points : . 6 O Points: 0 of 1 Save Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Star - Cart with a special order. The Hall of Fame wants to purchase 58,000 baseball card packs for a special promotional campaign and offers $0.40 per pack, a total of $22.400. Star-Cavazs total production costi 50.00 per pack, as follows: Click the icon to view the cost information) Star-Carcz has enough excess capacity to handle the special order Read the Muirements Requirement 1. Prepare an incremental analysis to determine whether Star-Cardz should accept the special sales order assuming fred costs would not be affected by the special order (Enter a *o* for any zero balances. Use parentheses or a minus sign to indicato a decrease in a operating income from the special order Per Unit Total Order (56,000 units) 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 Requirements X Data table 1. Prepare an incremental analysis to determine whether Star-Cardz should scoept 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 Star-Cardz must spend 54,700 to develop this hologram, which will be useless after the special order is completed. Should Star-Card accept the special crder under these circumstances? Show your analysis. ? Variable costs Direct materials S 0.12 0.07 Direct labor Variable overhead 0.11 0.30 Fixed overhead. Total cost... S 0.60 Print Done Print Done

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