Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Wantum - Cardz with a special order. The Hall of Fame wishes to
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Wantum - Cardz with a special order. The Hall of Fame wishes to purchase 52,000 baseball card packs for a special promotional campaign and offers $0.30 per pack, a total of $15,600. Wantum - Cardz's total production cost is $0.50 per pack, as follows: (Click the icon to view the cost information.) Wantum - Cardz has enough excess capacity to handle the special order. Read the requirements Requirement 1. Prepare a differential analysis to determine whether Wantum - 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 xD Expected in operating income Decision: Requirement 2. Now assume that the Hall of Fame wants special hologram baseball cards. Wantum - Cardz will spend $5,900 to develop this hologram, which will be useless after the special order is completed. Should Wantum - Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.30 per pack? Start by preparing the analysis with the additional cost for the special hologram (Enter decreases to profits with a parentheses or minus sign.) i Data Table - X S Expected increase in revenues Expected increase in expenses: Variable manufacturing cost: packs x Fixed manufacturing costs Expected increase in total expenses Expected in operating income 0.12 Variable costs: Direct materials Direct labor Variable overhead 0.05 0.08 0.25 Fixed overhead $ 0.50 Total cost Decision: Print Done
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started