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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Alley - Cardz with a special order. The Hall of Fame wishes to
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Alley - Cardz with a special order. The Hall of Fame wishes to purchase 58,000 baseball card packs for a special promotional campaign and offers $0.35 per pack, a total of $20,300. Alley - Cardz's total production cost is $0.55 per pack, as follows: E (Click the icon to view the cost information.) Alley - Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Alley - Cardz 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 L Expected in operating income Data Table broached Allev Cardz Allev - Cardz's total production cost is $0 55 per pack as follows: ball card 300. Requirements Variable costs: Direct materials ley-Card Direct labor 0.15 0.07 0.08 0.25 1. Prepare a differential analysis to determine whether Alley - Cardz should accept the special sales order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Alley - Cardz will spend $5,500 to develop this hologram, which will be useless after the special order is completed. Should Alley - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.35 per pack? Variable overhead Fixed overhead 0.55 Total cost Print | Done ] Done Print Done
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