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Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Star - Cardz must spend $4,900 to develop this hologram, which
Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Star - Cardz 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 Star - 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 1 Data Table Incremental Analysis of Special Sales Order Decision Per Unit (50,000 units) Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Variable costs: Direct materials Direct labor ......... Variable overhead Contribution margin 0.12 0.08 0.10 0.25 Less: Additional fixed expenses associated with the order Fixed overhead .. Increase (decrease) in operating income from the special order 0.55 Total cost ........... Enter any number in the edit fields and then click Check
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