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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
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 57,000 baseball card packs for a special promotional campaign and offers $0.41 per pack, a total of $23,370. World Wide Cards's total production cost is $0.61 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 requirements Video Requirement 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 (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Incremental Analysis of Special Sales Order Decision Revenue from special order $ Total Order Per Unit (57,000 units) 0.41 $ 23,370 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 Get mo Requirements 1. Prepare an incremental analysis to determine whether World Wide Cards should accept the special sales order assuming fxed 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 $4,000 to develop this hologram, which wit be useless after the special order is completed. Should World Wide Cards accept the special order under these circumstances? Show your analysis Data table. Variable costs Direct materials 0.12 Direct labor 008 Variable overhead 0.11 0.30 Fixed overhead... 061 Total cost Print Done Clear all Check answer x
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