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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hero Cardz witha Hero Cardz's total production cost is $0.47 per pack, as
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hero Cardz witha Hero Cardz's total production cost is $0.47 per pack, as follows: Hero Cardz has enough excess capacity to handle the special order. Read the requirements. special order. The Hall of Fame wishes to purchase 58,000 baseball card packs for a special promotionalR (Click the icon to view the cost information.) campaign and offers $0.27 per pack, a total of $15,660. Variable manufacturing cost 12,760 58,000 packsx0.22 $2,900 Expected increasein Decision: Accept the special sales order Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hero- Cardz will spend $5,700 to develop this hologram, which will be useless after the special order is completed. Should operating income Hero - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.27 per pack? Start by preparing the analysis with the additional cost for the special hologram. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses: Variable manufacturing cost packs x Fixed manufacturing costs Expected increase in total expenses Expected in operating income 1Data Table Variable costs: $ 0.09 Direct materials Direct labor Variable overhead 0.05 0.25 Fixed overhead $0.47 Total cost Print Done Requirements 1. Prepare a differential analysis to determine whether Hero - Cardz should accept the special sales order 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hero Cardz will spend $5,700 to develop this hologram, which will be useless after the special order is completed. Should Hero - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.27 per pack? PrintDone
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