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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hero-Cardz with a special order. The Hall of Fame wishes to purchase 51,000
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hero-Cardz with a special order. The Hall of Fame wishes to purchase 51,000 baseball card packs for a special promotional campaign and offers $0.38 per pack, a total of $19,380. Hero-Cardz's total production cost is $0.50 per pack, as follows: (Click the icon to view the cost information.) Hero-Cardz has enough excess capacity to handle the special order Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Hero-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 Expected Decision in operating income Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hero-Cardz will spend $5,800 to develop this hologram, which will be useless after the special onder completed. Should Hero-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.38 per pack? Start by preparing the analysis with the additional cost for the special hologram. (Enter decreases to profits with a parentheses or minus sign.) Expected increase in revenues Expected increase in expenses Variable manufacturing cost packs Fixed manufacturing costs Expected increase in total expenses Expected Decision: in operating income ent 1. Prepare a differentia increase in revenues increase in expenses ble manufacturing cost: Data table Variable costs: packs x Direct materials $ 0.12 d in operating Direct labor 0.08 Variable overhead 0.08 0.30 ent 2. Now assume that the Should Hero-Cardz acce reparing the analysis with th d increase in revenues Fixed overhead $ 0.58 Total cost ed increase in expenses: able manufacturing cost: packs x Print Done - X sorder. (Enter decreases to profits with a p nd $5,800 to develop this hologram, which w special pricing of $0.38 per pack? parentheses or minus sign.) special promotional campaign and offers $0.38 per pack, a total of $19,380. the icon to view the cost information.) Hero-Cardz has enough excess capacity to handle the sp Read the requments Requirement 1. Prepare a differential Expected increase in Expected increase in Variable manufac Requirements order. (Enter decreases to profits with a parenthese X Expected Decision: Requirement 2. Now a completed. Should Her Start by preparing the a 1. Prepare a differential analysis to determine whether Hero-Cardz should accept the special sales order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hero-Cardz will spend $5,800 to develop this hologram, which will be useless after the special order is completed. Should Hero-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.38 per pack? Develop this hologram, which will be use of $0.38 per pack? r minus sign.) Expected increase in Expected increase in Variable manufac packs Print Done Expected in operating income Decision: Requirem completed Start by pr Accept the special sales order. Expecte Expecte Reject the special sales order. Variable manufacturing cost: packs x Fixed manufacturing costs wants special hologram baseball cards. Her order under these circumstances, assuming st for the special hologram. (Enter decrease=
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