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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby Memorabilia with a special order. The Hall of Fame wants to purchase
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby Memorabilia with a special order. The Hall of Fame wants to purchase 52,000 baseball card packs for a special promotional campaign and offers $0.39 per pack, a total of $20,280. F Hobby Memorabilia's total production cost is $0.59 per pack, as follows: (Click the icon to view the cost information.) Hobby Memorabilia has enough excess capacity to handle the special order. Read the requirements. Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby Memorabilia with a special Requirement 1. Prepare an incremental analysis to determine whether Hobby Memorabilia should accept the special 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 (52,000 units) Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Decision: Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hobby Memorabilia must spe incremental analysis to determine whether Hobby Memorabilia should accent the special order under these circumstances Requirement 2. Now anmume that the Hall of Fame wants special hologram baseball cards Hobby Memorabilia must spend $5,100 incremental analysis to determine whether Hobby Memorabilia should accept the special order under these cecunstances. (Enter income from the special order) to develop thes fologram, which will be useless after the special orde is completed Prepare an for any zamo balances Use parents or a minus sign to indicate adece in operating Incremental Analysis of Special Sales Order Decision Per Unit Total Order (52,000 units) Revenue from special order Less variable expense associated with the under Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase decrease) in operating income from the special order Decision Time Renaming 04.3232 Next 1. Prepare an incremental analysis to determine whether Hobby Memorabilia 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. Hobby Memorabilia must spend $5,100 to develop this hologram, which will be useless after the special order is completed. Should Hobby Memorabilia accept the special order under these circumstances? Show your analysis. Data table Variable costs: Direct materials Direct labor Variable overhead Fixed overhead Total cost. SA $ 0.13 0.09 0.12 0.25 $ 0.59
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