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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Wantum - Cardz with a special order. The Hall of Fame wishes to
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Wantum - Cardz with a special order. The Hall of Fame wishes to purchase 51,000 baseball card packs for a special promotional campaign and offers $0.31 per pack, a total of $15,810. Wantum - Cardz's total production cost is $0.51 per pack, as follows: (Click the icon to view the cost information.) Wantum-Cardz has enough excess capacity to handle the special order. Read the requirements. Requirement 1. Prepare a differential analysis to determine whether Wantum - 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: - X packs Data Table Expected in operating income Variable costs: S 0.09 0.09 Direct materials Direct labor Variable overhead Fixed overhead - X 0.08 0.25 Requirements S 0.51 Total cost 1. Prepare a differential analysis to determine whether Wantum - Cardz should accept the special sales order. 2. Now assume that the Hall of Fame wants special hologram baseball cards Wantum - Cardz will spend $5,700 to develop this hologram, which will be useless after the special order is completed. Should Wantum - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.31 per pack? ( Print Done Print Done Print Print Done
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