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Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached International Cards with a special Requirements order. The Hall of Fame wishes to
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached International Cards with a special Requirements order. The Hall of Fame wishes to purchase 56,000 baseball card packs for a special promotional campaign and 1. Prepare an incremental analysis to determine whether International Cards should accept the special sales offers S0.43 per pack, a total of $24,080. International Cards's total production cost is $0.63 per pack, as follows: EE Click the icon to view the cost information.) rder assuming fixed costs would not be affected by the special order. 2. Now assume that the Hall of Fame wants special hologram baseball cards. International Cards must spend $5,000 to develop this hologram, which will be useless after the special order is completed. Should Intemational Cards accept the special order under these circumstances? Show your analysis Intemational Cards has enough excess capacity to handle the special order. Requirement 1. Prepare an incremental analysis to determine whether International Cards should accept the special sales order assuming fixed costs would not be affected by the special order. (Enter a "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(56,000 units) Revenue from special order 0.43 24,080 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
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