Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec-Cards must spend $4,900 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental analysis to determine whether Rec-Cardz should accept the special order under these circumstances. (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 Incremental Analysis of Special Sales Order Decision Per Unit (54,000 units) Revenus from special order 0.36 19440 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 0.32 17.280 0.04 2160 4.900 2740 Data table Variable costs: Direct materials ...... $ 0.13 Direct labor 0.08 Variable overhead Fixed overhead....... Total cost... 0.11 0.25 $ 0.57 Print Done Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec-Cardz with Ka special order. The Hall of Fame wants to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.37 per pack, a total of $19,980. Rec-Card's total production cost is $0.57 per pack, as follows: (Click the icon to view the cost information) Rec-Cantz has enough excess capacity to handle the special order. Read the requirements Requirement 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. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order) Incremental Analysis of Special Sales Order Decision Per Unit Total Order (54,000 units) Revenue from special order $ 0.37 $ 19,900 Less variable expense associated with the order: 0.32 17.280 Variable manufacturing costs S Contribution margin 0.05 $ 2,700 0 Less: Additional fixed expenses associated with the order 2.700 increase (decrease) in operating income from the special order Decision: Accept the special sales order Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec-Cards must spend $4,000 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental analysis to determine whether Rec-Cardz should accept the special order under these circumstances. (Enter a "O" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (54,000 units) 00 Get more help- Clear all Check Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Decision: Accept the special sales order C 0.32 11280 0.05 $ 2,700 0 2,700 Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec-Cardz must spend $4,000 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental analysis to determine whether Rec-Cardz should accept the special order under these circumstances. (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 Incremental Analysis of Special Sales Order Decision Per Unit (54,000 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 Get more help 0.32 17.260 4,900 Clear all Check answer Data table Variable costs: Direct materials $ 0.13 Direct labor Variable overhead Fixed overhead......... Total cost.... 0.08 0.11 0.25 $ 69 0.57 Print Done - X