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Suppose the Baseball Hall of Fame in Cooperstown, New International Cards's total production cost is $0.63 York, has approached International Cards with a special per

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Suppose the Baseball Hall of Fame in Cooperstown, New International Cards's total production cost is $0.63 York, has approached International Cards with a special per pack, as follows: order. The Hall of Fame wants to purchase 56.000 baseball card packs for a special promotional campaign and offers . _ $043 per pack a total of $24 080. International Cards has enough excess capacity to handle the special order. @ {Click the icon to View the cost information.) Read the muirements. Requirement 1. Prepare an incremental analysis to determine whether lntemational 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.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (56,000 units) Revenue from special order 24,080l Less variable expense associated with the order: Variable manufacturing costs 0'33 | Contribution margin I Less: Additional fixed expenses associated with the order | Increase (decrease) in operating income from the special order =| Variable costs: Direct materials ............. $ Direct labor ................ Variable overhead ........... Fixed overhead .................. $ Total cost 0.13 0.08 0.12 0.30 0.63 1. Prepare an incremental analysis to determine whether International Cards should accept the special sales order assuming xed costs would not be affected by the special order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. International Cards must spend $5,000 to develop this hologram, which will be useless after the special order is completed. Should International Cards accept the special order under these circumstances? Show your analysis

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