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Please complete all the requirements. Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Active - Cardz's total production cost is $0.58
Please complete all the requirements.
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Active - Cardz's total production cost is $0.58 per pack, as follows: Active - Cardz with a special order. The Hall of Fame wants purchase 58,000 baseball card packs for a special promotional campaign and offers $0.38 per pack, Active - Cardz has enough excess capacity to handle the special order. (Click the icon to view the cost information.) a total of $22,040. Read the requirements Requirement 1. Prepare an incremental analysis to determine whether Active-Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Total Order Per Unit (58,000 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 Data Table - X Requirements - X Variable costs Direct materials $ 0.11 0.07 1. Prepare an incremental analysis to determine whether Active - 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 baseball cards. Active - Cardz must spend 55,600 to develop this hologram, which will be useless after the special order is completed. Should Active - Cardz accept the special order under these circumstances? Show your analysis. Direct labor Variable overhead 0.10 0.30 Fixed overhead $ 0.58 Total cost Print Done Print Done ETICO TUCI TUC CUILTICIUS ETTU LICIT UNICAZRTSWerStep by Step Solution
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