Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached

TigerCardz

with a special order. The Hall of Fame wishes to purchase

53,000

baseball card packs for a special promotional campaign and offers

$0.31

per pack, a total of

$16,430.

TigerCardz's

total production cost is

$0.51

per pack, as follows:

Variable costs: Direct mat $0.09 Direct lab 0.09 Variable c 0.08 Fixed ove 0.25 Total cost $0.51