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Suppose the Baseball Hall of Fame has approached Rec - Cardz Company with a special order. The Baseball Hall of Fame wishes to purchase 5

Suppose the Baseball Hall of Fame has approached Rec - Cardz Company with a special order. The Baseball Hall of Fame wishes to purchase 52,000 baseball card packs for a special promotional campaign and offers $0.31 per pack, a total of $16,120. Rec-Cardz Company's total production cost is $0.51 per pack, as follows:
View the cost information.
Rec-Cardz Company has enough excess capacity to handle the special order.
Read the requirements.
Requirement 1. Prepare a differential analysis to determine whether Rec-Cardz Company should accept the special sales order. (Enter decreases to profits with a parentheses or minus sign.)
Expected increase in revenues
Expected increase in expenses
Variable manufacturing cost: packs x
Expected
in operating income in operating income
Cost Information
\table[[Variable costs:,,],[Direct materials,,0.14],[,Direct labor,0.04],[,Variable overhead,0.08],[Fixed overhead,0.25,],[Total cost,$,?,0.51,]]
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