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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 51,000 baseball card packs for a special promotional campaign and offers $0.30 per pack, a total of $15.300. 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 TEL (Click the icon to view the cost information.) order. -X Requirements - 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 $5,500 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 $0.30 per pack? Print Done dz accept the theses or minus sig Variable costs: Direct materials $ 0.11 0.08 Direct labor Variable overhead Fixed overhead Total cost 0.08 0.25 $ 0.50 Print Done 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 in operating income Decision: Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hero - Cardz will spend $5,500 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 $0.30 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 II Expected in operating income
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