requirement 1

E8-21A (similar to) Question Help Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Star - Cardz with a special order. The Hall of Fame wants to purchase 55,000 baseball card packs for a special promotional campaign and offers $0.34 per pack, a total of $18,700. Star - Cardz's total production cost is $0.54 per pack, as follows: (Click the icon to view the cost information.) Star - Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare an incremental analysis to determine whether Star - 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 Requirements Incremental Analysis of Special Sales Order Decision Per Unit (55,000 units) Revenue from special order Less variable expense associated with the order: Data Table Variable manufacturing costs Contribution margin 1. Prepare an incremental analysis to determine whether Star - 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. Star - Cardz must spend $5,100 to develop this hologram, which will be useless after the special order is completed. Should Star - Cardz accept the special order under these circumstances? Show your analysis. Less: Additional fixed expenses associated with the order Variable costs: Increase (decrease) in operating income from the special order Direct materials $ 0.11 Direct labor 0.08 Print Done Variable overhead 0.10 0.25 Fixed overhead $ 0.54 Enter any number in the edit fields and then click Check Answer. Total cost ? 3 parts Check Answer remaining Print Done