Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec - Cardz with a special order. The Hall of Fame wants to
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec - Cardz with a special order. The Hall of Fame wants to purchase 58,000 baseball card packs for a special promotional campaign and offers $0.38 per pack, a total of $22,040. Rec-Cardz's total production cost is $0.58 per pack, as follows: (Click the icon to view the cost information.) Rec-Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare incremental analysis to determine whether Rec-Cardz minus sign to indicate a decrease in operating income from the special order.) ected by the special order. (Enter a "O" for any zero balances. Use parentheses or a Data Table Per Un Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable costs: Direct materials Direct labor 0.14 Variable overhead Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order 0.07 0.12 0.25 Fixed overhead 0.58 Total cost Increase (decrease) operating income from the special order Print Done Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec - Cardz with a special order. The Hall of Fame wants to purchase 58,000 baseball card packs for a special promotional campaign and offers $0.38 per pack, a total of $22,040. Rec-Cardz's total production cost is $0.58 per pack, as follows: Click the icon to view the cost information.) Rec-Cardz has enough excess capacity to handle the special order. Read the requirements Requirement 1. Prepare incremental analysis to determine whether Rec-Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. (Enter a "O" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Total Order 158.000 units) Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Per Unit .38 Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) operating income from the special order Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Rec - Cardz with a special order. The Hall of Fame wants to purchase 58,000 baseball card packs for a special promotional campaign and offers $0.38 per pack, a total of $22,040. Rec-Cardz's total production cost is $0.58 per pack, as follows: (Click the icon to view the cost information.) Rec-Cardz has enough excess capacity to handle the special order. Read the requirements Requirement 1. Prepare incremental analysis to determine whether Rec-Cardz should accept the special sales order assuming fixed costs would not be affected by the special order. (Enter a "O" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special X Requirements Incremental Analysis of Special Sales Order Decision Revenue from special order 1. Prepare an incremental analysis to determine whether Rec-Cardz should Less variable expense associated with the order: accept the special sales order assurning fixed costs would not be affected by the special order Variable manufacturing costs 2. Now assume that the Hall of Fame wants special hologram baseball cards. Contribution margin Rec-Cardz must spend $5,000 to develop this hologram, which will be useless after the special order is completed. Should Rec-Cardz accept the Less: Additional fixed expenses associated with the order special order under these circumstances? Show your analysis. Increase (decrease) operating income from the special order Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started