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Show Your Steps How Do You Solve It: Calculate Variable manufacturing costs, Contribution margin, Less: Additional fixed expenses associated with the order, Increase (decrease in
Show Your Steps How Do You Solve It: Calculate Variable manufacturing costs, Contribution margin, Less: Additional fixed expenses associated with the order, Increase (decrease in operating income from the special order For Total Order (57,000 units) in Requirement 1 x 10 Data Table Requirements Variable costs: Direct materials ......... $ 0.13 0.09 Direct labor 1. Prepare an incremental analysis to determine whether Global Sports Cards 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. Global Sports Cards must spend $5,200 to develop this hologram, which will be useless after the special order is completed. Should Global Sports Cards accept the special order under these circumstances? Show your analysis Variable overhead 0.10 0.25 Fixed overhead $ 0.57 Total cost .................. Print Done Print Done Trummer TITLE EMIL Terus alta tenT CHICK UTEUR ATTSWET. Requirement 1. Prepare an incremental analysis to determine whether Global Sports Cards 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 Revenue from special order Total Order Per Unit (57,000 units) $ 0.37 $ 21,090 Less variable expense associated with the order: Variable manufacturing costs $ 0.05 Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order
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