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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collectible Cards with a special order. The Hall of Fame wants to
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Collectible Cards with a special order. The Hall of Fame wants to purchase 50,000 baseball card packs for a special promotional campaign and offers $0.42 per pack, a total of $21,000. C Co 882 Data table Re Variable costs me Direct materials 0.12 Incremental Analysis of Special Sales Order Decision Per Unit (50,000 units) Direct labor 0.09 Revenue from special order Variable overhead 0.11 Less variable expense associated with the order: 0.30 Fixed overhead Variable manufacturing costs Contribution margin $ 0.62 Total cost Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Decision: Print Done Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Collectible Cards must spend $4,700 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental analysis to determine whether Collectible Cards should accept the special order under these circumstances. (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 Per Unit Total Order (50,000 units) Revenue from special order Less variable expense associated with the order Variable manufacturing costs Contribution margin
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