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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 Hobby -
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hobby - Cardz with a special order. The Hall of Fame Hobby - Cardz's total production cost is $0.65 per pack, as follows: wishes to purchase 58,000 baseball card packs for a special promotional campaign and offers $0.45 per pack, a total of $26,100. (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.) Requirements - X Expected increase in revenues Expected increase in expenses Variable manufacturing cost: packs x Expected in operating income 1. Prepare a differential analysis to determine whether Hobby - Cardz should accept the special sales order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hobby - Cardz will spend $5,500 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 $0.45 per pack? 0 Data Table Variable costs: $ Print Direct materials Done Direct labor Variable overhead 0.16 0.11 0.13 0.25 0.65 Fixed overhead Total cost
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