Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby Memorabilia with a special order. The Hall of Fame wants to purchase $52,000$ baseball card packs for a special promotional campaign and offers $$0\mathrm{.}46$ per pack, a total of $$23,920.$ Hobby Memorabilia's total production cost is $$0\mathrm{.}66$ per pack, as follows:

View the cost information.

Hobby Memorabilia has enough excess capacity to handle the special order.

Read the requirements.

Requirement $1.$ Prepare an incremental analysis to determine whether Hobby Memorabilia 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.$)$

$\backslash$table$[[$Incremental Analysis of Special Sales Order Decision $\{$fe$85$f$11$bd$-$bda$0-4397-94$d$3-$f$5$f$2$f$9$c$26$eb$4\}$ Per Unit

$\backslash$table$[[$Total Order$],[(52,000$ units$)]],],[$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

Cost information

$\backslash$table$[[$Variable costs:$],[$Direct materials,$$,0\mathrm{.}14],[$Direct labor,,$0\mathrm{.}09],[$Variable overhead,,$0\mathrm{.}13],[$Fixed overhead.,,$0\mathrm{.}30],[,$$$,0\mathrm{.}66]]$

Requirements

Prepare an incremental analysis to determine whether Hobby Memorabilia should accept the special sales order assuming fixed costs would not be affected by the special order.

Now assume that the Hall of Fame wants special hologram baseball cards. Hobby Memorabilia must spend $$5,600$ to develop this hologram, which will be useless after the special order is completed. Should Hobby Memorabilia accept the special order under these circ$$mstances$?$ Show your analysis.