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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached World Wide Cards with a special order. The Hall of Fame wants to
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached World Wide Cards with a special order. The Hall of Fame wants to purchase 52,000 baseball card packs for a special promotional campaign and offers $0.33 per pack, a total of $17,160. World Wide Cards's total production cost is $0.53 per pack, as follows: (Click the icon to view the cost information.) World Wide Cards has enough excess capacity to handle the special order. Read the decrease in operating income from the special order.) Requirements 1. Prepare an incremental analysis to determine whether World Wide Cards should accept the special sales order assuming fixed costs would not be affected by the special order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. World Wide Cards must spend $4,700 to develop this hologram, which will be useless after the special order is completed. Should World Wide Cards accept the special order under these circumstances? Show your analysis. Data table
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