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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby-Cardz with a special order. The Hall of Fame wishes to purchase 54,000
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby-Cardz with a special order. The Hall of Fame wishes to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.28 per pack, a total of $15,120 Hobby-Cardz's total production cost is $0.48 per pack, as follows: (Click the icon to view the cost information) Hobby-Cardz has enough excess capacity to handle the special order Read the requirements Requirement 1. Prepare a differential analysis to determine whether Hobby-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 Expected in operating income Data table Variable costs Direct materials Direct labor Variable overhead Fleed overhead Total cost - X $ 0.10 0.04 0.09 025 0.48 Requirements 1. Prepare a differential analysis to determine whether Hobby-Cardz should accept the special sales order 2. Now assume that the Hall of Fame wants special hologram baseball cards Hobby-Card will spend $5,000 to develop this hologram, which will be useless after the special order is completed. Should Hobby-Cardz accept the special onder under these circumstances, assuming no change in the special pricing of $0.28 per pack
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