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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Alley-Cardz with a special order. The Hall of Fame wishes to purchase
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Alley-Cardz with a special order. The Hall of Fame wishes to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.33 per pack, a total of $17,820. Alley-Cardz's total production cost is $0.53 per pack, as follows: Click the icon to view the cost information.) Alley-Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Alley-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 Data table qul Variable costs: Direct materials Expl Direct labor Exp Variable overhead Fixed overhead Exp Total cost Print Done $ 0.12 0.08 0.08 0.25 $ 0.53 Requirements 1. Prepare a differential analysis to determine whether Alley-Cardz should accept the special sales order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Alley-Cardz will spend $5,900 to develop this hologram, which will be useless after the special order is completed. Should Alley-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.33 per pack? Print Done
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