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please do it asap,thanks! Suppose the Hockey Hall of Fame in Toronto has approached Trader-Cardz with a special order. The Hall of Fame wants to
please do it asap,thanks!
Suppose the Hockey Hall of Fame in Toronto has approached Trader-Cardz with a special order. The Hall of Fame wants to purchase 57,000 hockey card packs for a special promotional campaign and offers $0.44 per pack, a total of $25,080. Trader-Cardz's total production cost is $0.58 per pack, as follows: @ (Click the icon to View the cost information.) TraderCardz has enough excess capacity to handle the special order. @uirements Cost information d not be affected by Variable costs: Direct materials Direct labour ................. Variable overhead ............ Fixed overhead .................... $ Total cost ......................... = which will be Requirement 1. Prepare an incremental analysis to determine whether Trader-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.) Trade r-Cardz Incremental Analysis of Special Sales Order U Expected increase in revenues Expected increase in expenses: Variable manufacturing costs UH Fixed manufacturing costs Total expected increase in expenses W Expected increase (decrease) in operating income Trader-Cardz should V the special sales order because the operating income is expected to V Requirement 2. Now assume that the Hall of Fame wants special hologram hockey cards. Trader-Card: must spend $1,800 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental analysis to determine whether Trader-Cardz should accept the special order under these circumstances. (Use parentheses or a minus sign to enter a decrease in operating income.) Trade r-Cardz Incremental Analysis of Special Sales Order H Expected increase in revenues Expected increase in expenses: Variable manufacturing costs MU Fixed manufacturing costs Total expected increase in expenses W Expected increase (decrease) in operating income Trader-Cardz should V the special sales order under these circumstances because the operating income is expected to VStep by Step Solution
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