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Star-Cardz's total production cost is $0.56 per pack, as follows: Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Star-Cardz with a
Star-Cardz's total production cost is $0.56 per pack, as follows: Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Star-Cardz with a special order. The Hall of Fame wishes to purchase 52,000 baseball card packs for a special promotional campaign and offers $0.36 per pack, a total E(Click the icon to view the cost information.) $18,720. Star Cardz has enough excess capacity to handle the special order. Read the reguirements Requirement 1. Prepare a differential analysis to determine whether Star Cardz should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Data Table Expected increase in expenses Variable manufacturing cost: packs x Variable costs: in operating income Expected Direct materials 0.11 Direct labor 0.05 Variable overhead 0.10 0.30 Fixed overhead 0.56 Total cost Requirements 1. Prepare a differential analysis to determine whether Star Cardz should accept the special sales order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Star Cardz will spend $5,300 to develop this hologram, which will be useless after the special order is completed. Should Star Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.36 per pack? Choose from any list or enter any number the input fields and then click Check Answer. parts remaining Print Done
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