Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Active- Cardz with a special order. The Hall of Fame wants to purchase 56,000 baseball card packs for a special promotional campaign and offers $0.35 per pack, a total of $19,600.

Active- Cardz's total production cost is $0.55 per pack, as follows:

Variable costs:
Direct materials	$0.13
Direct labor	0.07
Variable overhead	0.10
Fixed overhead	0.25
Total cost	$0.55

Requirements

1. Prepare an incremental analysis to determine whether Active-Cardz should accept the special sales order assuming fixed costs would not be affected by the special order.

2. Now assume that the Hall of Fame wants special hologram baseball cards. Active-Cardz must spend $5,400 to develop this hologram, which will be useless after the special order is completed. Should Active-Cardz accept the special order under these circumstances? Show your analysis.

Can you please help me out with this.