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.

TigerCardzs" 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