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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Sports Fanatic with a special order. The Hall of Fame wants to purchase
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Sports Fanatic with a special order. The Hall of Fame wants to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.35 per pack, a total of $18,900. Sports Fanatic's total production cost is $0.55 per pack, as follows: Sports Fanatic has enough excess capacity to handle the special order. Requirement 1. Prepare an incremental analysis to determine whether Sports Fanatic should accept the special sales order assuming fixed costs would not be affected by the special order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Sports Fanatic with a special order. The Hall of Fame wants to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.35 per pack, a total of $18,900. Sports Fanatic's total production cost is $0.55 per pack, as follows: Sports Fanatic has enough excess capacity to handle the special order. Requirements 1. Prepare an incremental analysis to determine whether Sports Fanatic 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. Sports Fanatic must spend $5,000 to develop this hologram, which will be useless after the special order is completed. Should Sports Fanatic accept the special order under these circumstances? Show your analysis. Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Sports Fanatic with a special order. The Hall of Fame wants to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.35 per pack, a total of $18,900. Sports Fanatic's total production cost is $0.55 per pack, as follows: Sports Fanatic has enough excess capacity to handle the special order. Requirement 1. Prepare an incremental analysis to determine whether Sports Fanatic should accept the special sales order assuming fixed costs would not be affected by the special order. (Enter a "0" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Sports Fanatic with a special order. The Hall of Fame wants to purchase 54,000 baseball card packs for a special promotional campaign and offers $0.35 per pack, a total of $18,900. Sports Fanatic's total production cost is $0.55 per pack, as follows: Sports Fanatic has enough excess capacity to handle the special order. Requirements 1. Prepare an incremental analysis to determine whether Sports Fanatic 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. Sports Fanatic must spend $5,000 to develop this hologram, which will be useless after the special order is completed. Should Sports Fanatic accept the special order under these circumstances? Show your analysis
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