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Suppose the Baseball Hall of Fame has approached Ball Card Company with a special order. The Baseball Hall of Fame wishes to purchase 57,000
Suppose the Baseball Hall of Fame has approached Ball Card Company with a special order. The Baseball Hall of Fame wishes to purchase 57,000 baseball card packs for a special promotional campaign and offers $0.41 per pack, a total of $23,370. Ball Card Company's total production cost is $0.61 per pack, as follows: View the cost information. Ball Card Company has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Ball Card Company should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses Variable manufacturing cost: packs x Expected increase in operating income Cost Information Variable costs: Direct materials Direct labor $ 0.13 0.06 Variable overhead 0.12 0.30 Fixed overhead $ 0.61 Total cost Print Done
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