Rec−Cardz with a special order. The Hall of Fame wants to purchase $59,000 baseball card packs for a special promotional campaign and offers $0.37 per pack, a total of $21,830.

 

1. Prepare an incremental analysis to determine whether Rec- 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. Rec -Cardz will spend $5,900 to develop this hologram, which will be useless after the special order is completed. Should H the special order under these circumstances, assuming no change in the special pricing of $0.39 per pack?

H Data Table Variable costs: Direct materials ..... Direct labar... Variable, overhead.... Fixed overhead Total cost... S $ X 0.14 0.09 0.10 0.30 0.63