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1. Prepare a differential analysis to determine whether Wantum - Cardz should accept the special sales order. 2. Now assume that the Hall of
1. Prepare a differential analysis to determine whether Wantum - Cardz should accept the special sales order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Wantum - Cardz will spend $5,600 to develop this hologram, which will be useless after the special order is completed. Should Wantum - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.36 per pack? Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Wantum-Cardz with a special order. The Hall of Fame wishes to purchase 55,000 baseball card packs for a special promotional campaign and offers $0.36 per pack, a total of $19,800. Wantum - Cardz's total production cost is $0.56 per pack, as follows: (Click the icon to view the cost information.) Wantum-Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Wantum-Cardz should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses Variable manufacturing cost: packs x Expected in operating income Variable costs: Direct materials Direct labor Variable overhead Fixed overhead Total cost EA $ 0.11 0.11 0.09 0.25 $ 0.56
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