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Please do both questions Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached World Wide Cards with a special order. The Hall
Please do both questions
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached World Wide Cards with a special order. The Hall of FameWorld Wide Cards's total production cost is $0.56 per pack, as follows wants to purchase 59,000 baseball card packs for a special promotional campaign and offers S0.36 per pack, a total of $21,240. EEB (Click the icon to view the cost information.) World Wide Cards has enough excess capacity to handle the special order Read the requirements. Requirement 1. Prepare an incremental analysis to determine whether World Wide Cards should accept the special sales order assuming fixed costs would not be affected by the special order. (Enter a "O" for any zero balanc operating income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (59,000 units) 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 Data Table 1. Prepare an incremental analysis to determine whether World Wide Cards Variable costs: should accept the special sales order assuming fixed costs would not be affected by the special order Direct materials Direct labor Variable overhead S 0.12 0.08 0.11 0.25 $ 0.56 2. Now assume that the Hall of Fame wants special hologram baseball cards. World Wide Cards must spend $5,400 to develop this hologram, which will be useless after the special order is completed. Should World Wide Cards accept the special order under these circumstances? Show your analysis Fixed overhead Total cost PrintDone Print DoneStep by Step Solution
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