Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached International Cards with a special order. The Hall of Fame wants to purchase 56,000 baseball card packs for a special promotional campaign and offers $0.43 per pack, a total of $24 080 International Cards's total production cost is $0.63 per pack, as follows: (Click the icon to view the cost information.) International Cards has enough excess capacity to handle the special order. Read the requirements. *** - X - Xcial order. (Enter a "0" for any zero balances. Use Req paro Data table Requirements Variable costs. 0.13 Reve Direct materials 0.08 Less 1. Prepare an incremental analysis to determine whether International Cards should accept the special sales order assuming fixed costs would not be affected by the special order. 2. Now assume that the Hall of Fame wants special hologram baseball cards International Cards must spend $5,000 to develop this hologram, which will be useless after the special order is completed. Should International Cards accept the special order under these circumstances? Show your analysis Direct labor Variable overhead 0.12 0.30 Con Fixed overhead S 0.63 Lest Total cost Incr Print Done Dec ( Print Done the special order is completed. Prepare an incremental dicate a decrease in operating income from the special Reg analysis to determine whether international Cards should accept the special order under these circumstance order) Total Order (56,000 units) Per Unit Incremental Analysis of Special Sales Order Decision Revenue from special order se ska avance serated with the mar Next MacBook Air 30 3 Q 7 FY 4 esc z ! 7 $ 4 96 5 & & 7 ) 0 6 8 9 3 2 7 E Q R U W T I Y Y 0 A S D F G H J i a>? estion: 20 point(5) possible Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached International Cards with a special order. The Hall of Fame wants to purchase 56,000 baseball card packs for a special promotional campaign and offers $0.43 per pack, a total of $24,080 International Cards's total production cost is $0.63 per pack, as follows: (Click the icon to view the cost Information) International Cards has enough excess capacity to handle the special order. Read the requirements ERE Requirement 1. Prepare an incremental analysis to determine whether International Cards 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 Per Unit (56,000 units) Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Decision: Requirem analysis to order.) vants special hologram baseball cards. International Cards must spend $5,000 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental ould accept the special order under these circumstances. (Enter a "o" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special Accept the special sales order. Total Order Per Unit (56,000 units) In Reject the special sales order. Jer Decision Revenue from special order I nee varishla aynones senciated with the rrior Next MacBook Air 80 D FE SAL a 4 7 esc SR EF Fa BE % 5 Y $ 4 & 7 C 9 8 - 6 O 1 3 2 W E R U Y T 7 J G H S D F Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached International Cards with a special order. The Hall of Fame wants to purchase 56,000 baseball card packs for a special promotional campaign and offers $0.43 per pack, a total of $24,080. International Cards's total production cost is $0.63 per pack, as follows: (Click the icon to view the cost information) International Cards has enough excess capacity to handle the special order Read the requirements. FEE Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Decision: Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards, International Cards must spend $5,000 to develop this hologram, which will be useless after the special order is completed. Prepare an incremental analysis to determine whether International Cards should accept the special order under these circumstances. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special o . order.) Total Order Per Unit (56,000 units) Incremental Analysis of Special Sales Order Decision Revenue from special order Less variable expense associated with the order: : Variable manufacturing costs Contribution margin Less: Additional fixed expenses associated with the order Increase (decrease) in operating income from the special order Decision: Next MacBook Air La 99 RO * a a esc > - A . y $$ 4 96 5 8 7 9 8 6 - 7 3 2 0 U Y w W E E R T G H S D F Z >
