Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hungry-Cardz with a special order. The Hall of Fame wishes to purchase 50,000 baseball card packs for a special promotional campaign and offers $0.28 per pack, a total of $14,000. Hungry-Cardz's total production cost is $0.48 per pack, as follows: (Click the icon to view the cost information.) Hungry-Cardz has enough excess capacity to handle the special order. Read the requirements. . Requirement 1. Prepare a differential analysis to determine whether Hungry-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 x Expected in operating income Decision: Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hungry-Cardz will spend $5,700 to develop this hologram, which will be useless after the special order is completed. Should Hungry-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.28 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: Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hungry-Cardz with a special order. The Hall of Fame wishes to purchase 50,000 baseball card packs for a special promotional campaign and offers $0.28 per pack, a total of $14,000. Hungry-Cardz's total production cost is $0.48 per pack, as follows: (Click the icon to view the cost information.) Hungry-Cardz has enough excess capacity to handle the special order - X Data table Variable costs: Requirement 1. Prepare a differential al a parentheses or minus sign.) s order. (Enter decreases to profits with Direct materials $ 0.10 Direct labor 0.04 Expected increase in revenues Expected increase in expenses Variable manufacturing cost: Variable overhead 0.09 0.25 Fixed overhead $ 0.48 packs Total cost Expected in operating ind Decision: Print Done Requirement 2. Now assume that the which will be useless after the special or in the special pricing of $0.28 per pack? end $5,700 to develop this hologram, pse circumstances, assuming no change 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: Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hungry-Cardz with a special order. The Hall of Fame wishes to purchase 50,000 baseball card packs for a special promotional campaign and offers $0.28 per pack, a total of $14,000. Hungry-Cardz's total production cost is $0.48 per pack, as follows: Click the icon to view the cost information.) Hungry-Cardz has enough excess capacity to handle the special order. Read the requirements. .. Expected in operating income Decision: Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hungry-Cardz will spend $5,700 to develop this hologram, which will be useless after the special order is completed. Should Hungry-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.28 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 in operating income Decision
