Homework: Chapter 8 Homework Questions Save Score: 0 of 10 pts 1 of 7 (0 complete) HW Score: 0%, 0 of 70 pts E8-17A (book/static) Question Help Suppose the Hockey Hall of Fame in Toronto has approached Sports-Cardz with a special order. The Hall of Fame wants to purchase 60,000 hockey card packs for a special promotional campaign and offers $0.40 per pack, a total of $24,000. Sports-Cardz's total production cost is $0.60 per pack, as follows: (Click the icon to view the cost information.) Sports-Cardz has enough excess capacity to handle the special order. Requirements 1. Prepare an incremental analysis to determine whether Sports-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 hockey cards. Sports-Cardz must spend $2,000 to develop this hologram, which will be useless after the special order is completed. Should Sports Cardz accept the special order under these circumstances? Show your analysis. Requirement 1. Prepare an incremental analysis to determine whether Sports-Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. (Use parentheses or a minus sign to enter a decrease in operating income.) Sports-Cardz Incremental Analysis of Special Sales Order 0 Cost information Expected increase in revenues Expected increase in expenses: Variable manufacturing costs Fixed manufacturing costs Variable costs: Direct materials Direct labour Variable overhead Fixed overhead 0.14 0.08 Total expected increase in expenses Expected increase (decrease) in operating income 0.60 Total cost. Enter any number in the edit fields and then click Check Answer. Print Done 3 parts remaining Clear All HappyCow processes organic milk into plain yogourt. HappyCow sells plain yogourt to hospitals, nursing homes, and restaurants in bulk 4-L containers. Each batch processed at a cost of $800, yields 2,000 (500 4-L) containers of plain yogourt. Happy Cow sells the 4-L tubs for $6.00 each and spends 50.10 for each plastic tub. Happy Cow has recently begun to reconsider its strategy to sell individual-size portions of fruited organic yogourt at local food stores. HappyCow could further process each batch of plain yogourt into 10,526 individual portions (190 mL each of fruited yogourt. A recent market analysis indicates that demand for the product exists. Each individual portion would sell for $0.50. Packaging would cost $0.00 per portion, and fruit would cost $0.10 per portion Fred costs would not change. Should HappyCow continue to sell only the 4L tubs of plain yogourtsellas-is) or convert the plain yogourt into individual-sized portions of fruited yogourt process further? Why? Calculate the net benefit per batch under each alternative. (If a box is not used in the table, leave the box empty, do not enter a zero Round the net benefit per batch to the nearest whole dollar) Sell as 4-L Sell as individual Net benefit per unit Net benefit per batch Choose from any list or enter any number in the input fields and then click Check
