Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Active $-$ Cardz with a special order. The Hall of Fame wishes to purchase $52,000$ baseball card packs for a special promotional campaign and offers $$0\mathrm{.}41$ per pack, a total of $$21,320.$

Active $-$ Cardz's total production cost is $$0\mathrm{.}61$ per pack, as follows: $($Click the icon to view the cost information.$)$

Active $-$ Cardz has enough excess capacity to handle the special order.

Read the requirements.

Expected increase in revenues

Expected increase in expenses

Variable manufacturing cost: packs $x$

Expected in operating income

Requirements

Prepare a differential analysis to determine whether Active$-$Cardz should accept the special sales order.

Now assume that the Hall of Fame wants special hologram baseball cards. Active $-$ Cardz will spend $$5,900$ to develop this hologram, which will be useless after the special order is completed. Should Active $-$ Cardz accept the special order under these circumstances, assuming no change in the special pricing of $$0\mathrm{.}41$ per pack?

Data table

$\backslash$table$[[$Variable costs:$],[$Direct materials,$$,0\mathrm{.}14],[$Direct labor,,$0\mathrm{.}04],[$Variable overhead,,$0\mathrm{.}13],[$Fixed overhead,,$0\mathrm{.}30],[$Total cost$,$$$,0\mathrm{.}61]]$