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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Active - Cardz Active - Cardz's total production cost is $0.55 per pack,
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Active - Cardz Active - Cardz's total production cost is $0.55 per pack, as follows: with a special order. The Hall of Fame wants to purchase 51,000 baseball card packs for a special (Click the icon to view the cost information.) promotional campaign and offers $0.35 per pack, a total of $17,850. Active - Cardz has enough excess capacity to handle the special order, Read the requirements. Requirement 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. (Ente "O" for any zero balances. Use parentheses or a minus sign to indicate a decrease in operating income from the special order.) Total Order Incremental Analysis of Special Sales Order Decision Per Unit (51,000 units) 17,850 Revenue from special order 0.35 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 Data Table - Requirements - 0.12 Variable costs: Direct materials Direct labor Variable overhead 0.07 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 $4,700 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. 0.11 Fixed overhead 0.25 $ 0.55 Total cost ... Print Done Print Done
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