PART A Suppose the Basketball Hall of Fame has approached Sports Cards Inc. with a special order. The Hall of Fame wants to buy 50,000 packs of basketball cards for a special promotional campaign and offers to pay $0.40 per pack. The price charged to regular customers is $0.75 per pack. Sports Cards Inc. production costs per pack are as follows: Variable costs Cost Direct materials 50.14 Direct labour 0.08 Variable overhead 0.13 Fixed overhead 0.25 Required: 1. Assume Sports Cards Inc. has the capacity to handle the order. Prepare an analysis to determine whether Sports Cards Inc. should accept the special order assuming fixed costs would not be affected by this special order. 2. Now assume that Basketball Hall of Fame want a special hologram on each card which will require Sports Cards Inc. to spend $5,000 to develop it. It will be useless after this special order is completed. Should Sports Cards Inc. accept the special order? What is the minimum price per pack they should charge Basketball Hall of Fame? 3. Now assume that Sports Cards Inc. is operating at full capacity and the special order will require that it spend $5,000 to develop the special hologram. What is the minimum price that Sports Cards Inc. should charge for this special order