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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec - Cardz with a special order. The Hall of Fame wishes to
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec - Cardz with a special order. The Hall of Fame wishes to purchase 58,000 baseball card packs for a special promotional campaign and offers $0.36 per pack, a total of $20,880. Rec - Cardz's total production cost is $0.56 per pack, as follows: BB: (Click the icon to view the cost information.) Rec - Cardz has enough excess capacity to handle the special order. S Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Rec - 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 Data table Variable costs: Direct materials $ 0.14 Direct labor 0.04 Variable overhead 0.13 0.25 Fixed overhead GA 0.56 Total cost Print Done quirements 1. Prepare a differential analysis to determine whether Rec - Cardz should accept the special sales order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Rec-Cardz will spend $5,300 to develop this hologram, which will be useless after the special order is completed. Should Rec - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.36 per pack
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