Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached

Sports $-$ Cardz with a special order. The Hall of Fame wishes to purchase $50,000$

baseball card packs for a special promotional campaign and offers $$0\mathrm{.}39$ per pack,

a total of $$19,500.$

Sports $-$ Cardz's total production cost is $$0\mathrm{.}59$ per pack, as follows:

$($Click the icon to view the cost information.$)$

Sports $-$ Cardz has enough excess capacity to handle the special order.

Read the requirements.

Requirement $1.$ Prepare a differential analysis to determine whether Sports $-$ 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:

packs $$

Expected

in operating income

Data table

Variable costs:

Direct materials

$$,0\mathrm{.}10$

Direct labor

Variable overhead

Fixed overhead

Total cost

Requirements

Prepare a differential analysis to determine whether Sports $-$ Cardz should

accept the special sales order.

Now assume that the Hall of Fame wants special hologram baseball cards.

Sports $-$ Cardz will spend $$5,300$ to develop this hologram, which will be

useless after the special order is completed. Should Sports $-$ Cardz accept the

special order under these circumstances, assuming no change in the special

pricing of $$0\mathrm{.}39$ per pack?