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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Card Fanatic with a special order. The Hall of Fame wants to purchase
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Card Fanatic with a special order. The Hall of Fame wants to purchase comma baseball card packs for a special promotional campaign and offers $ per pack, a total of $ comma Card Fanatic's total production cost is $ per pack, as follows:
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Card Fanatic has enough excess capacity to handle the special order.
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Requirement Prepare an incremental analysis to determine whether Card Fanatic should accept the special sales order assuming fixed costs would not be affected by the special order. Enter a for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.
Incremental Analysis of Special Sales Order Decision
Per Unit
Total Order units
Revenue from special order
Less variable expense associated with the order:
Variable manufacturing costs
Contribution margin
Less: Additional fixed expenses associat
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