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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
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 59,000 baseball card packs for a special promotional campaign and offers $0.39 per pack, a total of $23,010. Hero - Cardz's total production cost is $0.59 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. Variable costs: Direct materials $ 0.15 Direct labor 0.11 Variable overhead 0.08 Fixed overhead 0.25 Total cost $ 0.59 Prepare a differential analysis to determine whether Hero - Cardz should accept the special sales order. 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 $0.39 per pack
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