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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hungry-Cardz with a special order. The Hall of Fame wishes to purchase 53,000
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hungry-Cardz with a special order. The Hall of Fame wishes to purchase 53,000 baseball card packs for a special promotional campaign and offers $0.37 per pack, a total of $19,610. Hungry-Cardz's total production cost is $0.57 per pack, as follows: : (Click the icon to view the cost information.) Hungry-Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Hungry-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 Expected in operating income Decision: Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hungry-Cardz will spend $5,700 to develop this hologram, which will be useless after the special order is completed. Should Hungry-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.37 per pack? Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hungry-Cardz will spend $5,700 to develop this hologram, which will be useless after the special order is completed. Should Hungry-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.37 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 Decision: Choose from any list or anter in the innuit fields and the action X Data Table $ 0.16 Variable costs: Direct materials Direct labor Variable overhead Fixed overhead 0.04 0.12 0.25 $ 0.57 Total cost Print Done
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