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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby - Cardz with a special order. The Hall of Fame wishes to

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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby - Cardz with a special order. The Hall of Fame wishes to purchase 55,000 baseball card packs for a special promotional campaign and offers $0.37 per pack, a total of $20.350. Hobby - Cardz's total production cost is $0.57 per pack, as follows: E (Click the icon to view the cost information.) Hobby - Cardz has enough excess capacity to handle the special order. Read the requirements Requirement 1. Prepare a differential analysis to determine whether Hobby - 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 x Expected in operating income Decision Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hobby - Cardz will spend $5,800 to develop this hologram, which will be useless after the special order is completed. Should Hobby - Cardz accept the special order under these circumstances, assuming no change in the special pricing of S0.37 per pack? Start by preparing the analysis with the additional cost for the special hologram. (Enter decreases to profits with a parentheses or minus sign.) - X Expected increase in revenues Requirements Expected increase in expenses: Variable manufacturing cost: packs x 1. Prepare a differential analysis to determine whether Hobby - Cardz should accept the special sales order. Fixed manufacturing costs 2. Now assume that the Hall of Fame wants special hologram baseball cards Hobby - Cardz will spend $5,800 to develop this hologram, which will be Expected increase in total expenses useless after the special order is completed. Should Hobby-Cardz accept the special order under these circumstances, assuming no change in the special Expected in operating income pricing of $0.37 per pack? Decision

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