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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby-Cardz with a special order. The Hall of Fame wishes to purchase
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby-Cardz with a special order. The Hall of Fame wishes to purchase 53,000 baseball card packs for a special promotional campaign and offers $0.35 per pack, a total of $18,550. Hobby Cardz's total production cost is $0.55 per pack, as follows: (Click the icon to view the cost information.) Hobby Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Hobby - 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: 53,000 packs x $ 0.25 $ 18,550 $ (13,250) 5,300 Expected increase in operating income Decision: Accept the special sales order. Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hobby-Cardz will spend $5,700 to develop this hologram, which will be useless after the special order is Should Hobby-Cords encant the enacial order under these circumstances accumina no change in the enacial pricing of 0 25 nor nark
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