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Suppose the Baseball Hall of Fame in Cooperstown, New York has approached Hungry - Cardz with a special order. The Hall of Fame wishes to
Suppose the Baseball Hall of Fame in Cooperstown, New York has approached Hungry - Cardz with a special order. The Hall of Fame wishes to purchase 58,000 baseball card packs for a special promotional campaign and offers $0.30 per pack, a total of $17,400. Hungry-Cardz's total production cost is $0.50 per pack, as follows: (Click the icon to view the cost information.) Hungry-Cardz has enough excess capacity to handle the special order. Read the requirements Requirement 1. Prepare a differential analysis to determine whether Hungry-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 * Requirements 1. Prepare a differential analysis to determine whether Hungry - Cardz should accept the special sales order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. Hungry-Cardz will spend $5,000 to develop this hologram, which will be useless after the special order is completed. Should Hungry-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.30 per pack? Print Done i Data Table 0.12 Variable costs: Direct materials Direct labor Variable overhead 0.05 0.08 0.25 Fixed overhead $ 0.50 Total cost Print Done
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