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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 baseball card packs for a special promotional campaign and offers $ per pack, a total of $ Sports Fanatic's total production cost is $ per pack, as follows: View the cost information. Sports Fanatic has enough excess capacity to handle the special order. Read the requirements. Requirement 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 for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order. Incremental Analysis of Special Sales Order Decision Per Unit Total Order 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 tableVariable costs:,Direct materials,$Direct labor,,Variable overhead,,Fixed overhead.,,Total cost$
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 baseball card packs for a special promotional campaign and offers $ per pack, a total of $ Sports Fanatic's total production cost is $ per pack, as follows:
View the cost information.
Sports Fanatic has enough excess capacity to handle the special order.
Read the requirements.
Requirement 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 for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.
Incremental Analysis of Special Sales Order Decision
Per Unit
Total Order
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
tableVariable costs:,Direct materials,$Direct labor,,Variable overhead,,Fixed overhead.,,Total cost$
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